BOK Working/Discussion Papers

  1. Research Papers
  2. BOK Working/Discussion Papers

Towards a Sound and Stable Financial System in Korea: Revisited

Economic Research Institute (82-2-759-5407) 2004.11.02 3367

Towards a Sound and Stable Financial System in Korea: Revisited


                       

I. Introduction 2

II. Comparative Financial Systems: A Survey 6
1. Theoretical Debates 6
2. Empirical Results 13
3. Summary 16

III. Convergence of Financial Systems 18
1. Tendency of Convergence 18
2. Obstacles to Convergence 20
3. Implications 22

IV. Evaluating the Status of Korean Financial System 24
1. Changes in Flows of Fund 26
2. Causality between Financial Sector and Economic Growth 34
3. Path-dependency of Korean Financial System 38

V. Designing a Sound System in Korea 45
1. Reasons to Shift towards the Market-based System 45
2. Concerns for a Successful Transformation 46
3. Strategies 51

VI. Conclusions 56

 60

top