... has been strengthened in Korea, as with many other developed markets, since the onset of the 2008 global financial crisis. But the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) ¡ as the principal regulatory bodies ¡ at times encounter difficulty in enforcing regulations effectively, especially on policy banks and non-bank financial institutions (NBFIs). This is because of the influence of several ministries, over-complicated regulations and the large number of NBFIs. Proactive Supervision: Fitch Ratings believes that, as with other countries, prudent and proactive regulatory supervision is critical to promoting banking system stability in Korea, and it would also encourage banks to focus on longer-term strategies. NBFI Supervision Under Development: Regulators are making an effort to improve NBFI supervision. Progress has been slower than for banks, as regulatory supervision is complicated by the potentially...
