Many people are concerned about the financial crisis that hit Europe and is affecting the entire world economy. But the term financial crisis is not new, and it seems that such a word is always there with us. With that in mind, have you ever thought how stable South Korea’s economy is? If you have, you will be able to know the strengths and weaknesses of our country very soon!
International Monetary Fund and World Bank are conducting Financial Sector Assessment Program (FSAP) on South Korea’s financial sector to evaluate our economy. For South Korea, the assessment was conducted in 2003, and this is the second time that S. Korea is being evaluated under FSAP.
To briefly explain what FSAP is, it is a program that was introduced in 1999 by IMF and World Bank to insure the stability of world economy. Twenty five member states that are considered important in a global financial system and Financial Stability Board (FSB) member countries have the obligation to be evaluated regularly.
The first stage assessment began on April 4th and will continue until the nineteenth of this month. In this first stage evaluation, 16 people including Assistant Director at IMF Monetary and Capital Markets Department Ghiath Shapbsigh will come to Korea to visit Financial Services Commission, Ministry of Strategy and Finance, Bank of Korea, Financial Supervisory Service, and so on. Law system in the financial sector along with the fulfillment of international standards will be the core of this stage’s evaluation.
The second stage will be conducted in the coming June for two weeks. Risk management capabilities, risk factors, and financial stability policies will be evaluated.
Once the evaluation has ended, Financial Services Commission, along with other institutions will work to enhance South Korea’s financial sectors. Financial Services Commission, Ministry of Strategy and Finance, and Bank of Korea have created a taskforce to effectively prepare for FSAP.
I will come with the results of FSAP soon!
By Moonhee Park (email@example.com)