Lee Bok-hyun Attends Meeting of Financial Authorities and Central Bank Heads in Asia-Pacific Region

11 Central Bank and Supervisory Heads Attend
Introduction of Korea's Rapid Response... Discussion on Future Supervisory Measures
Discussion on Reviving Regular Meetings with Japan's Financial Services Agency Suspended Since 2016

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), will attend a meeting of financial supervisory authorities and central bank governors from 11 countries in the Asia-Pacific region to discuss current issues and introduce Korea's supervisory cases.

The FSS announced on the 23rd that Governor Lee will attend the 12th East Asia-Pacific Financial Supervisory Authorities and Central Bank Governors Meeting (EMEAP GHOS) held on the 25th in Yokohama, Japan.

The meeting will be attended by heads of five supervisory authorities including Korea's FSS, China’s National Financial Regulatory Administration (NFRA), Japan’s Financial Services Agency (FSA), Australia’s Australian Prudential Regulation Authority (APRA), and Indonesia’s Financial Services Authority (OJK), as well as 11 central banks including the Bank of Korea, Reserve Bank of Australia (RBA), People’s Bank of China (PBOC), Hong Kong Monetary Authority (HKMA), Bank Indonesia (BI), Bank of Japan (BOJ), Bank Negara Malaysia (BNM), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), Bank of Thailand (BOT), and Reserve Bank of New Zealand (RBNZ).

Governor Lee will serve as a key presenter in the second session titled "Effective Bank Supervision Considering Lessons from Recent Events." He will evaluate the recent banking crises in the United States and Europe as incidents caused by a combination of macroeconomic changes such as the tightening of monetary policy and the advancement of financial digitalization with vulnerabilities in individual banks. He plans to emphasize the active role of supervisory authorities in strengthening liquidity and interest rate risk supervision, expanding banks’ own loss-absorbing capacity, and establishing a risk management culture for effective bank supervision.

Additionally, he will share Korea’s experience where economic, monetary, and financial authorities cooperated to stabilize the financial market, introducing domestic supervisory efforts that ensure timely correction and improvement of vulnerable sectors through proactive and swift responses when risk vulnerabilities are detected.

Furthermore, the meeting will discuss effective supervision of “peculiar banks” operating atypical business models like Silicon Valley Bank, as well as supervisory responses to potential risks arising from financial digitalization such as social media and online banking.

Prior to the main meeting, on the 24th, Governor Lee will visit Japan’s Financial Services Agency for a bilateral meeting with the newly appointed Commissioner Teruhisa Kurita to discuss ways to foster the digital asset ecosystem. They will also discuss resuming the "Korea-Japan Financial Supervisory Shuttle Meeting," which has been suspended since June 2016. This is a high-level regular meeting between Korean and Japanese financial supervisory authorities that began in November 2012 and was held six times until June 2016.

[Image source=Yonhap News]

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