The size of the debt guarantee [Korea goyounghun financial newspaper reporter] showed that the total financial investment companies soared 41.3 percent, or between two and a half years.
According to the Financial Supervisory five days proved to be a financial investment company debt guarantees is rapidly scale and potential risks of the financial investment companies expanding into real estate-related debt guarantees displacement phenomenon.
The company size of the debt guarantee was extended to year-end 2013 from 16.2 trillion won based on May 2016, six years 22.9 trillion won. The real estate debt guarantees accounted for 67% of the total loan guarantees to 15.3 trillion won.
Bar FSS has previously identified risk loan guarantees for debt guarantees for the status of the nine largest securities firms. 5 1 companies, including five companies that were duplicated in equity securities is greater than the risk management measures are checked as part of household debt.
9 companies loan guarantees in scale and June last year, a total of 14.2 trillion won, the total financial investment companies accounted for 62.0% compared to 22.9 trillion won. Equity share of debt guarantees against nine companies was 1.4 times higher than the overall average of 56.9% financial investment companies to 79.8%.
Nine of debt guarantees 14.2 trillion won of the underlying asset By real estate 11 trillion won (77.5%), type in the risk is greater credit facilities (purchase commitment, midam commit) a 11.4 trillion won (80.3%) of these risk the proportion of assets was high.
Loan guarantees can be classified into purchase agreements, purchase commitment, commitment midam (unsold mortgage commitment) by type. Typically midam purchase commitment and commitment is becoming a compulsory acquisition occurs wider range of perceived risk is greater as the credit facilities bear all the liquidity risk and credit risk.
Also selected were diagnosed as needing to be focused on LTV (Loan to Value) ratio is low in order to increase the likelihood of project payback obligations during the warranty responsibility.
LTV 50% or less based on real estate PF loan guarantees accounted for 63.0% to 5.7 trillion won. More share counterparty credit rating A rating yeoteuna average 63.2%, in some cases, the company revealed that the yen risk management with mortgage and credit ratings insufficient.
FSS johyoje financial investment director "has increased the share of the two largest credit facility risk and sustainability displacement phenomenon of the real estate" and has a "Most investment screening organization specializing in real estate PF trend to strengthen the business case assessment, but some companies can be a problem with the lack of screening personnel policies or important sales performance, "he explained.
These securities are also exposed to the anti-tip poor appearance and avoid the counterparty's credit rating, even though the amount set for gravity limit or manage risk, such as placing a limit on the credit rating and the underlying assets and setting limits period.
FSS As the real estate market until the first half of last year, but minor improvements are implemented loan guarantees was pointed out that this year is the need to strengthen the follow-up compared to the sluggish real estate market. This notice and the legislative amendments to the regulations up late last year warranty obligations related to financial investments and prepare for the implementation within the second quarter.
But to earn an allowance only for the current "frozen" under loan guarantees and earn an allowance for the debt guarantee categorized as 'normal' and 'precautionary' and plans to reflect their own stress tests carried out based on the Korea Financial Investment Association best practices .
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