Too Much Funds Deposited at Banks
- Situation not helping flow of funds at financial market

On Sept. 3, the KCCI's taxation finance committee invited Kim Sok-dong, director-general of the Financial Policy Bureau of the Finance and Economy Ministry, at its 23rd meeting, who spoke on "Latest Movement of Funds at the Financial Market and the Direction of Financial Policies." The meeting took place at Hotel Lotte.

Dir.-Gen. Kim said the function of mediating funds has been disturbed because funds have been concentrated in banks and other indirect  financial markets  as secure assets since the financial crisis in 1997. He said the concentration of funds weakened the mediatory function of funds with growing instability of the financial market. The government official blamed the situation for the liquidity crisis at investment trust firms and the sale of credit card company debts.

To remedy the situation, the director-general said the financial institutions should strengthen their risk management systems in addition to efforts to stabilize the financial market. Business firms should also make efforts to make their management more transparent and hike their facility investment. The government should build a financial infrastructure, among others.   nw