A Study on Potential Effect of Introducing Covered Bond onto Korean Deposit Insurance Fund

• 영문명: A Study on Potential Effect of Introducing Covered Bond onto Korean Deposit Insurance Fund
• 발행기관: 은행법학회
• 저자명: Gi jin Yang
• 간행물 정보: 『은행법연구』제7권 제1호, 161~192쪽, 전체 32쪽
• 주제분류: 법학 > 법학
• 파일형태: PDF
• 발행일자: 2014.05.01

영문 초록

This study aims to analyze the potential impact of issuing covered bonds (CBs) on the other creditors of issuer banks and the Korean Deposit Insurance Fund. 『Act on Issuance of Bonds with Dual Recourses』(CB Act) enforced on April this year introduces statutory covered bonds in Korea. When the domestic banks issue CBs, the Korean Deposit Insurance Fund (KDIF) might be expected to suffer loss in some cases according to simple stress test; the expected loss (EL) in this study shows that the EL may not be under control if issuers' asset deterioration become over certain level. Furthermore, a CB issuer bank has the duty to maintain the eligibility requirement for underlying assets (so-called cover pool) making the KDIF more vulnerable to an economic shock as the KDIF has to pay deposit holders if the issuer bank defaults, which will force the injection of money by the Korean government. On the other hand, it is doubtful whether the current CB Act is cautiously taking into consideration the negative external impact of issuing CB on the KDIF. Therefore, the Korean government should try to recognize the all potential effects (external diseconomy) and to take care of every aspect of issuing CB, thereby reshaping and/or fine-tuning the current CB Act.

목차

Ⅰ. Introduction

1. Background of this Study

2. Conflicts with issuing CB and deposit holders

3. Purpose of the Study

4. Research Question(s)

5. Hypothesis (or Claim)

6. Supporting Argument and Data

Ⅱ. Current CB Act and its potential impact on Korean Deposit Insurance Fund

1. Issuance of structured CB by a Korean domestic bank

2. Introduction of related provision in current CB Act

3. Confining the scope of analysis targets

4. Basic data for the analysis

5. Analysis and Result

Ⅲ. Endeavour for solution and policy Implications on Korean CB Act

1. Endeavor for harmonization between benefit and cost

2. Recent precedents of the USA and the UK

3. Some Policy Implications

Ⅳ.Summaries and conclusions

Reference

키워드

covered bond claims of dual recourses bonds with claims of dual recourses cover pool protection of deposit holders Deposit Insurance Fund 커버드본드 이중상환청구권 이중상환청구권부 채권 커버풀 기초자산집합 예금자 보호 예금보험기금