Yoon Seok-heon "Efforts to Minimize Market Shock When COVID-19 Financial Support Ends"

"Bank Role Weakens Amid Big Tech Growth... Concerns Over Expanding Financial Risks"

Yoon Seok-heon, Governor of the Financial Supervisory Service (Photo by Yonhap News)

[Asia Economy Reporter Kwangho Lee] Yoon Seok-heon, Governor of the Financial Supervisory Service, emphasized on the 31st (local time) that "we must prepare for financial market risks arising from the prolonged COVID-19 pandemic and strive to minimize market shocks when the ongoing COVID-19 financial support measures in various countries come to an end."

Governor Yoon made these remarks while attending the Basel Committee on Banking Supervision's High-Level Meeting (GHOS) held via video conference. The High-Level Meeting is a decision-making body composed of heads of financial supervisory authorities and central bank governors from Basel Committee member countries.

At the meeting, member countries approved the Basel Committee on Banking Supervision's work plan and discussed the interconnectedness and response strategies between non-bank financial intermediation (NBFI) and the banking system.

Governor Yoon noted, "In Korea as well, the growth of non-bank financial intermediation and big tech and fintech companies is weakening the intermediary role of banks, raising concerns about an expansion of financial system risks."

He continued, "To address these issues, it is important to take a comprehensive approach that considers the interconnectedness between banks and non-banks, as well as systemic risks across the financial industry and markets, rather than limiting regulatory and supervisory measures solely to the non-bank sector."

This content was produced with the assistance of AI translation services.