FSS holds financial review meetings

Lee Se-hoon, deputy governor of the Financial Supervision Service./Photo=Jin Young-gi, Hankyung.com reporter

The won-dollar exchange rate has exceeded the 1,480 won mark and continues its upward trajectory. The Financial Supervisory Service (FSS) has encouraged the financial sector to support export companies by extending the maturity of foreign currency loans and import letters of credit.

On the morning of the 27th, the FSS held a financial review meeting chaired by Deputy Governor Lee Se-hoon, assessing the increase in exchange rates and money market trends at the end of the year. Despite the recent volatility in the foreign exchange market and immediate corrective measures at some savings banks, the FSS concluded that the overall financial sector and corporate financing situation remains stable. In particular, the FSS concluded that in the area of ​​pension provision, where maturities are concentrated at the end of the year, there is no large-scale movement of funds between sectors and that the conditions for the issuance of corporate bonds are favorable.

Due to potential market instability due to rising exchange rates, the FSS decided to communicate with the financial sector and companies to identify difficulties and provide active support. In addition, banks were asked to ensure the proper implementation of support measures for export companies, such as: B. extending the term of foreign currency loans and import letters of credit as well as providing preferential discount rates for commercial bills.

At the Seoul foreign exchange market, the won-dollar exchange rate exceeded 1,480 won around 11 a.m. It is the first time since November 27, 2008, during the global financial crisis, that the exchange rate has exceeded 1,480 won during the day.

Deputy Governor Lee Se-hoon said: “We will actively support the smooth implementation of measures to improve foreign exchange supply and demand, such as: “We will continuously identify improvements in foreign exchange supervision to reduce the burden on export enterprises.”

The financial authorities want to ensure that measures such as the rationalization of risk weights for banks, the postponement of stress buffer capital and the transition to the new solvency system (K-ICS) for insurers are used in line with the intention to support the real economy. In addition, they intend to quickly support necessary measures to ensure that tailored debt adjustments for small business owners, business closure support and mutual growth financing are implemented smoothly.

Jin Young-gi, Hankyung.com reporter [email protected]