Seoul will discuss Volcker's rule in October FSB meeting

SEOUL, Feb. 9 (Yonhap) -- South Korea will discuss the tightening of banking
regulations and a reduction in banking moral hazard when it hosts a meeting of
the Financial Stability Board (FSB) in October, the head of the nation's
financial watchdog said Tuesday.

Key banking regulatory reforms will be the topic of discussion in the FSB meeting
in Seoul, including "strengthening prudential regulations on bank capital and
liquidity as well as reducing moral hazard posed by systemically important
financial institutions," said Chin Dong-soo, chairman of South Korea's Financial
Services Commission (FSC).
World efforts to rein in the banking sector have been highlighted recently after
U.S. President Barack Obama proposed a measure, also called the "Volcker's rule,"
to curb risky investing and rapid growth by banks.
Also to be addressed in the FSB meeting are global financial safety nets for
emerging economies, Chin said, referring to measures to enhance stability of the
foreign exchange liquidity in developing countries.
South Korea's hosting of the global financial council -- a gathering of finance
ministry officials, central bankers and regulatory agencies from the Group of 20
leading economies -- comes ahead of the G-20 summit meeting in Seoul in November.
"As the chair of the G-20 summit as well as a member of the FSB, Korea will make
every effort to play a major role in achieving consensus on financial reforms and
setting improved international standards," Chin said.
The remarks were made in a weekly financial briefing delivered in a video clip on
the FSC Web site. Chin made the comments in his first appearance in the regular
visual briefing conducted in the English language.
pbr@yna.co.kr
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