Debt securities expanded warranty coverage ... to earn 123 billion won loan loss reserves

The [Korea hyerin nine financial newspaper News] debt securities in the future warranty coverage is extended to loan loss reserves to earn. This needs a loan securities reserves of about 123 billion won. In addition, such enhanced prudential standards that are mandatory stress test is given twice a year to 100 billion won or more securities assets.

Financial Services Commission said that 23 days enforce amendments containing the financial investment industry, such as the contents to expand the loan-loss reserves eligible for strengthening prudential supervision of securities firms. Accordingly, securities must come from 31 days to earn credit reserves that earn only 'less secure' debt guarantees all debt guarantees. If the level of debt the end of last year, the loan guarantee is needed reserves of about 123 billion won.

Internal audit and surveillance systems, such as brokerage set up its own internal control standards for such loan guarantees, and impose compliance.

In addition, the financial crisis was to conduct a stress test by half a compulsory assets 100 billion won more than 46 brokerages place.

"Mortgage lending purposes, which allows re-use of government bonds as collateral to receive limited purposes, such as repurchase agreements (RP) · Mortgage also decided to allow.

However, in view of the recent global trends discussed to limit the excessive recycling of OTC derivatives trading margin has set strict requirements to prevent systemic risks caused. The limited purpose of collateral lending transactions with eligible basic integration bankruptcy law was limited batch settlement terms apply to mortgage securities, government bonds remain the case.

In addition to the requirements of decided to settle in units such as days, depending on the collateral valuation criteria The regulatory authorities have suggested that prevents leverage margin it is disclosed.

The reported balance with short sales and decided to shorten the disclosure deadline. The three days (T + 3 days) 9:00 am short sales backlog was reported period T + 2 and T + 3 days immediately following chapter to be anticipated exit any short selling balance sheet was published immediately after the end date occurs one from the disclosure obligations.

In addition to maintenance it had authorized the Investment Manager and other financial institutions registration. Sale financial investments, was timely and clear standards for the minimum holding gun What can professionals such as brokerage and maintenance requirements of the Credit Investment banking major shareholder in the same foreign financial institutions and domestic financial institutions.

Investment banking Is the maintenance system was applied from the notification day is 22 days. Mortgage lending purposes, debt loan guarantee reserve strengthening management targets and expanding contingent liabilities are effective from 31 days to come.

Establish internal control standards for such shorter period as short selling disclosure obligation is performed after the warranty from May 22, two months from the notification day, stress testing obligations of securities occurs on 1 July.



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