National audit of the Bank of Korea by the National Assembly's Finance and Economy Planning Committee
Bank of Korea Gov. Shin Hyun-song said Monday that while the central bank holds joint inspection rights, "the scope is quite limited."
Shin made the remarks during the morning session of the Bank of Korea national audit by the National Assembly's Finance and Economy Planning Committee, responding to a question from People Power Party lawmaker Yun Young-seok about the BOK's lack of information on non-bank financial institutions. "We are examining in advance all the channels through which financial risks could arise and are keeping a close watch," he said.
Shin went on to say that the bank would pursue "preemptive measures where possible, including legislative amendments."
Under the Bank of Korea Act, the central bank may, when necessary for the conduct of monetary and credit policy or financial stability, request that the Financial Supervisory Service conduct inspections of financial institutions or that BOK staff participate jointly in such inspections.
kimstar@heraldcorp.com
