Financial Services Commission Urges FSB for "Flexible Guidelines on COVID-19 Related Regulations"

Son Byung-du, Vice Chairman of the Financial Services Commission

[Asia Economy Reporter Kim Hyo-jin] The Financial Services Commission announced on the 31st that Vice Chairman Son Byung-du conveyed to the Financial Stability Board (FSB) the position that specific guidelines are necessary to flexibly apply financial regulations in response to the novel coronavirus disease (COVID-19) crisis.

Vice Chairman Son delivered this opinion at the FSB plenary meeting held in the form of a conference call the previous day.

The FSB is an organization involving the Group of Twenty (G20) countries. The FSB plenary meeting, the highest decision-making body, consists of heads of member countries' ministries of finance, central banks, and financial supervisory authorities.

Vice Chairman Son evaluated that "the fiscal and monetary policy coordination of major countries to support the real economy contributed to market stability," emphasizing that international cooperation is more important than ever to stabilize the international financial market from the impact of COVID-19.

He also stated, "It is necessary to remove information barriers among standing committees under the FSB related to COVID-19 to establish a more effective policy coordination system," and "there is also a need to prepare specific guidelines for the flexible application of international standards by international standard-setting bodies such as the Basel Committee on Banking Supervision (BCBS)."