Yang Kyung-sook: "Bank of Korea Must Strengthen Responsibility and Authority Over Payment and Settlement Systems"

"Bank of Korea, Authority Not Effective"… Establishing Payment and Settlement Operation Standards and Managing Settlement Risks

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[Asia Economy Reporter Jang Sehee] Yang Kyung-sook, a member of the Democratic Party of Korea, stated on the 16th, "The Bank of Korea's responsibility and authority over the payment and settlement system should be further strengthened."

Yang attended the Planning and Finance Committee meeting held at the National Assembly that day and said, "Since the amendment of the Bank of Korea Act in 2003, there have been no significant changes, making it difficult to actively respond to the rapidly changing payment and settlement environment and future challenges."

Referring to the International Monetary Fund (IMF)'s Financial Sector Assessment Program (FSAP) report on Korea, Yang emphasized, "While the Financial Services Commission has sufficient authority over the Bank of Korea's payment and settlement system and operating institutions, the Bank of Korea's authority is not effective. The IMF recommended strengthening enforcement power and enhancing information collection authority."

Accordingly, Yang proposed an amendment to the Bank of Korea Act that includes provisions such as ▲establishing payment and settlement operation standards ▲authority to request corrective actions ▲strengthening the right to demand data submission ▲payment risk management ▲inspection of participating institutions and the right to request joint inspections.

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