Supervisory Objectives
The FSS is geared to emphasize on-site supervision and examinations in its commitment to establishing itself as financial regulator that markets and consumers trust. The FSS will strengthen prudential supervision to prevent worsening economic and financial conditions from leading to financial distress in companies. The FSS will provide more financial support for low-income people and SMEs, particularly vulnerable to economic recession, and concentrate on strengthening consumer protection.
The FSS is hosting such regular events as Heart-to-Heart Talk and Campus Talk on Finance in its efforts to share thoughts and increase direct communication with financial consumers and markets.
The FSS has set up five objectives for this year’s supervisory guidelines and they are as follows.
1.Stabilizing Financial System
In its efforts to better brace for worsening global and domestic conditions including euro-zone debt crisis, the FSS will strengthen foreign currency liquidity management and encourage financial companies to have more ability to absorb losses by setting aside more loan loss provisions.
2.Protecting Financial Consumers
The FSS will earthen unreasonable practices embedded across the financial sector to correct them, and conduct more mystery shopping for five financial instruments that frequently incur losses to consumers.
3.Protecting Low-income People and SMEs
The FSS will intensify crackdown on illegal financial acts against low-income people and help reduce financial difficulties of SMEs by creating a level playing field between large companies and SMEs.
4.Innovating Supervisory System
Financial companies will be encouraged to bring their corporate governance in line with global standards and place a high premium on corporate social responsibility. The FSS will help attract global financial companies to domestic market and give support to domestic companies making inroads into global markets.
5.Open-minded Communications with Market Players
The FSS will press ahead with a comprehensive overhaul of the supervisory framework and better communication with consumers to restore confidence.
Read more about this topic: Financial Supervisory Service (South Korea)
Famous quotes containing the word objectives:
“Along the journey we commonly forget its goal. Almost every vocation is chosen and entered upon as a means to a purpose but is ultimately continued as a final purpose in itself. Forgetting our objectives is the most frequent stupidity in which we indulge ourselves.”
—Friedrich Nietzsche (1844–1900)