Chief of South Korea’s financial watchdog said Tuesday that he will streamline financial regulations and supervision through reform to improve financial players’ ability to innovate and create in the local financial market.
“We are working on financial sector reform measures,” Financial Supervisory Service (FSS) Governor Zhin Woong-seob said in a keynote speech for FSS Speaks 2015, an annually-held occasion to explain supervisory direction to foreign financial companies.
The country’s financial industry is facing various challenges, including falling net interest margins and intensifying competition, as seen around the world.
To overcome such challenges and revitalize the finance industry, the FSS plans to streamline supervisory practices, Zhin said.
He said the watchdog will reduce the current frequent examinations, while moderating enforcement actions to allow financial firms to deal with their employees who commit minor violations. The watchdog will focus on the significant violations and grave breaches.
The FSS also plans to remove unnecessary supervision practices that diminish financial firms’ ability to innovate and create in the domestic financial market, the governor said, but he noted that the watchdog will make best efforts to maintain market orders and protect consumers. Enditem