This argument suggests that [South Korea Jeongseon financial newspaper reporters - a veil (bail-in) the need to strengthen institutional arrangements to enhance the qualifications of investors viability of the system.
It said the Korea Development Institute (KDI) presents a particular bank debt repayment priority, coco bond care standards introduced, including strengthening investor qualifications with these claims from 17 "Veil introduced the direction of drafting for the end too big to fail" report.
Vale of (bail-in) is a system to clean up the troubled banks in such a way that the shareholders and creditors of the bank share the loss. It was introduced to replace the bail (bail-out) to cause the financial crisis, the Bank of moral hazard and state.
However, if a significant number of public creditors, the government is likely to choose a higher intellectual bailout. The recent banking crisis occurred in the Italian case. The government of political pressure on a large number of creditors, creditor banks lost share to locals it will be very big. South Korea is also a large bar analysis suggests that the majority of bank creditors to the general public depositors.
Hwangsun week KDI researcher, there is a need to strengthen investor eligibility requirements for bank bonds and Coco Bond '' the government if there is no non-professional investors in the target creditors political burden is lower when considering whether to invoke the veil measures' said he said.
Naenwatda but also introduced a savings bond reimbursement system first measures to limit the coverage to individuals and small businesses need to make the policy holder care.
The Coco-type bond issuance also jipeot rules. China and the EU up to a maximum of coco bonds issued by local authorities (EU) also hybrid securities Coco-type bonds are issued only by rules and regulations that type. Hwangsun week KDI researcher might consider a hybrid '' below the common capital ratio of the Bank criterion as an alternative to, or the government either of two conditions that specify the bank as insolvent financial institutions is that risk-sharing measures are triggered when the meeting ' there, he was presented.
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