The FSC Chairman Chin Dong-Soo attended the 2nd FSB Plenary Meeting in Paris on September 15. The meeting deliberated and finalized on most subjects that will be on the report, “Improving Financial Regulation” scheduled to be submitted to the Pittsburg G20 Summit on September 24-25.

The FSC Chairman Chin has contributed in the discussions taken place at the Plenary, the Steering Committee and the Standing Committee through his presentations on the following three main topics:

1. An in-depth discussion took place at the Plenary Meeting especially on the issue of how to stabilize the foreign currency liquidity in emerging countries. This particular subject has been adopted as an official agenda of the meeting as we proposed based upon our own experience in the current crisis. We successfully brought to attention one of the most serious stability issues faced by emerging economies.

2. Korea agreed on the basic concept and direction of the FSB’s regulatory reform of the capital framework and that the government and the banking industry are preparing for the strengthening of regulation.

3. We also emphasized that not only home but host countries should play more significant roles in within the supervisory colleges, a system of collaborated supervision of systemically important financial institutions.

Furthermore, the Standing Committee for Vulnerability Assessment, one of three Standing Committees within the FSB, has reported on four main areas of risk that include: the market impact of rapidly rising government debt, risks related to the timing of exit strategies from current policies, and the challenges in maintaining an appropriate balance and pace of regulatory reform. Authorities in emerging economies are assessing policy challenges related to currency mismatches on sectoral balance sheets and instability in portfolio flows.

* Please refer to the attached PDF for details.