FSC Designates 10 Banks and Bank Holding Companies as Systemically Important Financial Institutions
On July 23, the Financial Services Commission announced at its 14th regular meeting that it had designated 10 banks and bank holding companies, including Shinhan Financial Group, as Domestic Systemically Important Banks and Bank Holding Companies (D-SIBs) and Domestic Systemically Important Financial Institutions (D-SIFIs) for 2026.
The D-SIB system is a framework recommended by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) to strengthen supervision of large financial institutions in order to minimize the impact of their failure on the financial system and the economy. This system was introduced in Korea in 2016, and since then, D-SIBs have been selected annually. Selected banks and bank holding companies are required to maintain additional capital buffers.
Since 2021, if a bank or bank holding company is designated as a D-SIB, it is also designated as a D-SIFI under the Act on the Structural Improvement of the Financial Industry (the Financial Industry Restructuring Act), and is subject to requirements for self-recovery and resolution planning.
According to the assessment of systemic importance, Shinhan Financial Group, KB Financial Group, Hana Financial Group, Woori Financial Group, NongHyup Financial Group, as well as Shinhan Bank, Woori Bank, KB Kookmin Bank, Hana Bank, NongHyup Bank, Korea Development Bank, and Industrial Bank of Korea all received scores exceeding the minimum threshold for D-SIB designation.
Based on these results, Shinhan Financial Group, KB Financial Group, Hana Financial Group, Woori Financial Group, and NongHyup Financial Group were designated as systemically important bank holding companies, while Shinhan Bank, Woori Bank, KB Kookmin Bank, Hana Bank, and NongHyup Bank were designated as systemically important banks. This is the same result as the previous year.
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
- "Am I Really in the Top 30%?" and "Worried About My Girlfriend in the Bottom 70%"... Buzz Over High Oil Price Relief Fund
- "It Has Now Crossed Borders": No Vaccine or Treatment as Bundibugyo Ebola Variant Spreads [Reading Science]
Korea Development Bank and Industrial Bank of Korea, as public institutions in which the government holds shares and which are subject to statutory government loss-compensation provisions, were excluded from the designation in accordance with relevant regulations.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
