Financial Regulatory Forum

S.Korea sees no need for US-style reform of banks

February 3, 2010

FINANCIAL/KOREA-CAPITAL    SEOUL, Feb 3 (Reuters) – It is not desirable for South Korea to adopt U.S.-style banking reforms because the local industry and markets are still small and in the developing stage, the head of the top financial regulator said on Wednesday.
   “The new U.S. regulatory initiative called the ‘Volcker’s rule’ provides a lot of indications to us but whether it can apply here is another matter,” Chin Dong-soo, chairman of the Financial Services Commission, said in a prepared speech for an international seminar.
   South Korea has already been applying strict regulations on the sector and maintaining a clear division between commercial banks and investment banks, he said.
   “It is desirable (for South Korea) to maintain its previous stance of supporting development of the financial industry while taking measures to fix structural weakness identified during the current financial crisis,” he said. (Reporting by Yoo Choonsik; Editing by Jonathan Hopfner)
 ((choonsik.yoo@thomsonreuters.com; +82 2 3704 5580; Reuters Messaging: choonsik.yoo.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: BANKS KOREA/REGULATION
   
Wednesday, 03 February 2010 01:00:09RTRS [nTOE61200A] {C}ENDS

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