Regulatory Alerts2024-07-11 | 82663FSC Approves Recovery and Resolution Plans for D-SIFIs
The Financial Services Commission approved the 2024 recovery and resolution plans for ten Domestic Systemically Important Financial Institutions, including major holding companies like Shinhan and KB. These plans meet international standards and introduce enhanced tools for proactive risk preparation and swifter resolution proceedings to ensure financial system stability. The FSC identified specific areas requiring improvement and notified the Korea Deposit Insurance Corporation and the respective institutions of these obstacles.
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FSC Approves Recovery and Resolution Plans for D-SIFIs Jul 11, 2024
The Financial Services Commission announced on July 11 that it has approved the recovery plans prepared by D-SIFIs (2024) and their resolution plans drawn up by the Korea Deposit Insurance Corporation (KDIC) as recommended by the Financial Stability Board (FSB).
The FSC found that the recovery and resolution plans for ten D-SIFIs selected for 2024—Shinhan, KB, KEB Hana, Woori, and NongHyup financial holding companies and their banks—mostly meet international standards and those prescribed under the Act on the Structural Improvement of the Financial Industry. Certain factors that came across as requiring improvement and areas identified as obstacles in the resolution process have been notified to both KDIC and SIFIs.
Compared to the previous year, the recovery and resolution plans approved by the FSC this year carry tools and mechanisms enabling large financial companies to more actively prepare and respond to risk situations in advance, while allowing the resolution authority to more swiftly carry out resolution proceedings, thereby helping to ensure stability in the financial system in a more effective manner.
The recovery and resolution plans are operated on a yearly basis, and the authorities plan to review and approve the recovery and resolution plans for D-SIFIs selected for 2025 in the future.
- Please refer to the attached PDF for details.
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