Financial Stability Committee "Exercising Flexibility Within International Standards for COVID-19 Financial Support"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (center), Eun Sung-soo, Chairman of the Financial Services Commission (right), and Park Young-sun, Minister of SMEs and Startups, are briefing on the results of the emergency economic meeting at the Government Seoul Office in Jongno-gu, Seoul, on the 19th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Hyo-jin] The government has gained some leeway to interpret international standards flexibly in the process of providing financial support amid the aftermath of the novel coronavirus infection (COVID-19).

According to financial authorities on the 21st, the Financial Stability Board (FSB) released a statement yesterday outlining its stance on responding to COVID-19.

The FSB is an organization involving the Group of Twenty (G20) that promotes financial regulatory reforms to stabilize the global financial system through developing international standards and policy recommendations, monitoring the implementation of international standards, and enhancing cooperation among countries. It is the successor to the Financial Stability Forum (FSF), which involved the Group of Seven (G7).

In its statement, the FSB assessed that various financial reform policies implemented after the global financial crisis have improved the stability and resilience of the financial system.

The FSB also stated, "We are actively cooperating to maintain financial stability amid ongoing market stress related to COVID-19."

Furthermore, the FSB recommended exercising flexibility within the current international standards framework to provide financial accessibility to households and businesses facing difficulties due to COVID-19, and to ensure the appropriate use of capital and liquidity.

The FSB expressed its position that "to preserve the capacity of the financial system to maintain global financial stability, sustain market functions, and support economic growth, cooperation in various policy responses including financial policies will continue."

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