ID :
209852
Wed, 09/28/2011 - 06:31
Auther :
Shortlink :
https://oananews.org//node/209852
The shortlink copeid
More than half of deposit insurers' public funds unpaid: data
SEOUL (Yonhap) - More than half of public funds extended by the state deposit insurer has not yet been recouped, data showed Wednesday, raising doubts about the agency's fund capacity.
As of the end of July, the Korea Deposit Insurance Corp. (KDIC) has retrieved only 48.2 trillion won (US$41.1 billion), or 43 percent, of the 110.9 trillion won loaned to local financial firms over the last 10 years, according to data provided by financial regulators.
Commercial banks were the largest borrowers at 44.2 trillion won, followed by general financial firms with 21.7 trillion won and insurers at 19.4 trillion won, the data showed. Savings banks also borrowed 8.3 trillion won from the deposit insurer.
The data also showed that the KDIC had utilized 9.3 trillion won of its insurance commission fund to support ailing savings banks as of the end of July.
In contrast, the insurer took in 9.2 trillion won from commissions, casting doubts on its capacity to pay out further required insurance.
Following the suspension of seven savings banks earlier this month, the KDIC is expected to need to pay as much as 40 trillion won in insurance money by the end of the year.
In March, a special fund was set up at the KDIC as part of government efforts to restructure the ailing sector. The fund, which draws money from insurance commissions from savings banks and other financial institutions, was initially set to run until 2026 to help finance deposits and insufficient capital, by raising around 1 trillion won annually.
As of the end of July, the Korea Deposit Insurance Corp. (KDIC) has retrieved only 48.2 trillion won (US$41.1 billion), or 43 percent, of the 110.9 trillion won loaned to local financial firms over the last 10 years, according to data provided by financial regulators.
Commercial banks were the largest borrowers at 44.2 trillion won, followed by general financial firms with 21.7 trillion won and insurers at 19.4 trillion won, the data showed. Savings banks also borrowed 8.3 trillion won from the deposit insurer.
The data also showed that the KDIC had utilized 9.3 trillion won of its insurance commission fund to support ailing savings banks as of the end of July.
In contrast, the insurer took in 9.2 trillion won from commissions, casting doubts on its capacity to pay out further required insurance.
Following the suspension of seven savings banks earlier this month, the KDIC is expected to need to pay as much as 40 trillion won in insurance money by the end of the year.
In March, a special fund was set up at the KDIC as part of government efforts to restructure the ailing sector. The fund, which draws money from insurance commissions from savings banks and other financial institutions, was initially set to run until 2026 to help finance deposits and insufficient capital, by raising around 1 trillion won annually.
