• Title/Summary/Keyword: Capital Regulation

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Quality Management in Self-Regulating Capital Market

  • Ahn, Chul-Hwan
    • Journal of Korean Society for Quality Management
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    • v.25 no.4
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    • pp.50-56
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    • 1997
  • Three essential components of self-regulating capital market includes trading clearing and regulation. These three procedures have to be excuted in accurate, prompt, and orderly way so that the markets can provide individual investors with confidence. In this study, we review these procedures and discuss how the quality service of them can be related to investor confidence. We will also discuss the details of regulatory process and especially how to monitor the stock price and volume for the detection of their unusual movements as the first procedure of regulation.

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The Effect of Capital Accumulation and Unemployment Rates on GDP in South Korea between 2000 and 2005

  • LEE, Donghae
    • The Journal of Industrial Distribution & Business
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    • v.13 no.12
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    • pp.33-39
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    • 2022
  • Purpose: This research investigates the paths of some important economic variables: government domestic product (GDP), capital accumulation, unemployment rates. Decreasing GDP, declining capital accumulation and higher unemployment affect to South Korea economy. The macroeconomic policies discussed are all capital financed accumulation policy and an enactment of unemployment regulation. Research design, data and methodology: The GDP, capital accumulation rates and unemployment rates are the main macroeconomic issues in the South Korea. This research studies the correlations of the GDP, capital accumulation, and unemployment rates by time series data from 2000 to 2005 in a Vector Autoregressive (VAR). Results: The first, GDP relates a positive effect between the GDP and capital accumulation in the long term. The second, there is the negative relationship between GDP and unemployment rates. Economic growth was strongly supported by employment growth and by declining unemployment. The third, There is positive relationship between unemployment rates and capital accumulation. Conclusions: This research provides that fiscal policy introduce to increasing GDP, private investments and employment rates. The GDP should be major on capital accumulation to increase employment rates in South Korea.

The Effects of the Capital Adequacy and Liquidity Regulation on Internet Primary Banks (인터넷전문은행의 자본적정성과 유동성 규제에 관한 연구)

  • Bae, Jae Kwon
    • Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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    • v.9 no.6
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    • pp.773-782
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    • 2019
  • Basel III (Third Basel Accord or Basel Standards) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk. Basel III regulatory ratios include capital adequacy, asset soundness, and liquidity. The capital adequacy variables include BIS capital adequacy ratio, BIS tier 1 capital ratio, and tangible common equity ratio. The asset soundness variables include non-performing loan ratio and non-performing loan coverage ratio. The liquidity regulation variables include KRW liquidity coverage ratio and foreign currency liquidity coverage ratio. This study aims to investigate how capital adequacy standard affects efficiency of internet primary banks. As a result of this study, BIS capital adequacy ratio of domestic internet primary banks is lower than that of commercial banks. In order to maintain sustainable operation considering capital adequacy regulations, it is necessary to expand additional capital. In addition, the delinquency rate and non-performing loan ratio of domestic internet primary banks is gradually increasing due to the maturity of high-yield loans in 2019.

How Does the Regulation of Location Affect Firm's Management and Innovation Performance? (정부의 지역 입지규제는 기업 경영 및 혁신성과에 어떤 영향을 미치는가? -평택(경기도)과 천안(충청남도)지역 기업 비교분석을 중심으로-)

  • Seo, Young-Woong;Choi, Seok-Joon;Lee, Si-Wook
    • Journal of Korea Technology Innovation Society
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    • v.15 no.3
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    • pp.586-603
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    • 2012
  • In order to relieve overcrowding, the Korean government has regulated firm's locations in the capital region of Korea. However, the standard of regulation mainly depends on the place of province. Using KIS-Value data of firms that are located Pyeong-taek(the Capital area) or Cheon-an(Non Capital area), in close proximity to each other, we utilize OLS and negative binomial regression models for identifying the difference of firms' management and innovation performance in terms of firms' location difference(regulation difference). Our analysis shows that innovation performance of firms in Cheon-an does better than Pyeong-taek's, but management performance has no gaps between them. This result indicates that the regulation of firm's location has influence on firm's innovation performance. Thus, regulation policy regarding firms' location need to be minutely amended.

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Knockdown of Radixin by RNA interference Suppresses the Growth of Human Pancreatic Cancer Cells in Vitro and in Vivo

  • Chen, Shu-Dong;Song, Mao-Min;Zhong, Zhi-Qiang;Li, Na;Wang, Pi-Lin;Cheng, Shi;Bai, Ri-Xing;Yuan, Hui-Sheng
    • Asian Pacific Journal of Cancer Prevention
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    • v.13 no.3
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    • pp.753-759
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    • 2012
  • Radixin, encoded by a gene on chromosome 11, plays important roles in cell motility, invasion and tumor progression. However, its function in pancreatic cancer remains elusive. In this study, radixin gene expression was suppressed with a lentivirus-mediated short-hairpin RNA (shRNA) method. We found that radixin shRNA caused down-regulation of radixin in PANC-1 cells, associated with inhibition of pancreatic cancer cell proliferation, survival, adhesion and invasive potential in vitro. When radixin-silenced cells were implanted in nude mice, tumor growth and microvessel density were significantly inhibited as compared to blank control cells or nonsense shRNA control cells. Thrombospondin-1 (TSP-1) and E-cadherin were up-regulated in radixin-silenced PANC-1 cells. Our results suggest that radixin might play a critical role in pancreatic cancer progression, possibly through invvolvement of down-regulation of TSP-1 and E-cadherin expression.

A Study on the Obstacle Factors for the Entry of Korean Companies into Latin American Markets and their Countermeasures

  • Park, Chong-Suk
    • International Commerce and Information Review
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    • v.2 no.1
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    • pp.69-81
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    • 2009
  • In the past, trades with the Latin American markets were not active since the South Korean companies simply considered them substitute markets whenever exports were slow. However, the importance of these markets is highlighted anew thanks to the signing of the Korea-Chile Free Trade Agreement (FTA). Presently, Latin American nations are pursuing FTA with various nations in the world, regardless of the geographic boundaries, in order to vitalize their economy and attract foreign capital. Despite these efforts to liberalize the market, Latin American regions continue to restrict importation by leveraging diverse set of trade regulation policies. This research examines trade regulation policies in the Latin American regions and proposes Korea's countermeasures.

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A Study on the Obstacle Factors for the Entry of Korean Companies into Latin American Markets and their Countermeasures

  • Park, Chong-Suk
    • International Commerce and Information Review
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    • v.11 no.2
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    • pp.69-81
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    • 2009
  • In the past, trades with the Latin American markets were not active since the South Korean companies simply considered them substitute markets whenever exports were slow. However, the importance of these markets is highlighted anew thanks to the signing of the Korea-Chile Free Trade Agreement (FTA). Presently, Latin American nations are pursuing FTA with various nations in the world, regardless of the geographic boundaries, in order to vitalize their economy and attract foreign capital. Despite these efforts to liberalize the market, Latin American regions continue to restrict importation by leveraging diverse set of trade regulation policies. This research examines trade regulation policies in the Latin American regions and proposes Korea's countermeasures.

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How Have Indian Banks Adjusted Their Capital Ratios to Meet the Regulatory Requirements? An Empirical Analysis

  • NAVAS, Jalaludeen;DHANAVANTHAN, Periyasamy;LAZAR, Daniel
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.1113-1122
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    • 2020
  • The purpose of this study is to examine how the Indian banks have adjusted their risk-based capital ratios during 2009-2018 to meet the regulatory requirements. Banks can, in principle, increase their risk-based regulatory capital ratio, either by increasing their levels of regulatory capital or by shrinking their risk-weighted assets by adjusting asset growth or risk in the portfolio. We investigate banks' capital behavior by decomposing the change in the capital ratio into the contribution of its components and analyzing their variance across regulatory regimes and banks' ownerships. We further investigate how each component of the capital ratio is adjusted by the banks by breaking down them into balance sheet items. We find that the banks' capital behavior significantly differed between public and private sector banks and between the two regulatory regimes. During Basel II, banks, in general, followed a strategy of aggressive asset growth with increased risk-taking. The decline in the CRAR because of such an expansionary strategy was adjusted by augmenting additional capital. However, during Basel III, due to higher capital requirements, both in terms of quantity and quality, banks followed a strategy of cutting back their asset growth and reducing the risk in their portfolio to maintain their CRAR.

Preventing Capital Flight to Reach Lucrative Investment In Indonesia

  • BASORUDIN, Muhammad;KUSMARYO, R. Dwi Harwin;RACHMAD, Sri Hartini
    • Asian Journal of Business Environment
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    • v.10 no.1
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    • pp.29-36
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    • 2020
  • Purpose: This study aims to analyze the effect of macroeconomic and non-macroeconomic determinants of capital flight. Research design, data and methodology: With five determinants, this survey was conducted by Eviews 10, and the ordinary least squares (OLS) as a statistical method was applied for examining the research hypothesis. The five determinants are a budget deficit, economic growth, inflation rate, the exchange rate, and sovereign rating. The capital flight measurement uses the World Bank residual approach. The data derive from the Central Bank of Indonesia, BPS-Statistics Indonesia, OECD, and Moody's Investor Service. Results: The result considers that economic growth, the exchange rate, and the sovereign rating will decrease capital flight. In addition, the budget deficit and the inflation rate will increase capital flight. The sovereign rating decreases capital flight bigger than the other determinants. In addition, the exchange rate is statistically significant. Conclusions: The most influential problem of capital flight in Indonesia is because of non-macroeconomics factor political issue, corruption, bad regulation, and others. That's why the investment climate in Indonesia is still not secure. We propose that the regime would have to amend the business rule for reducing capital, raising the investment climate, and demonstrating the creative industry.

A Study on Measuring the Financial firm's Integrated Risk (금융회사의 통합위험 측정에 관한 연구)

  • Chang, Kyung-Chun;Lee, Sang-Heon;Kim, Hyun-Seok
    • Management & Information Systems Review
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    • v.29 no.4
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    • pp.207-223
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    • 2010
  • One of the important prudential regulations is the capital regulation. The current domestic and international capital regulation sets the minimum capital requirement according to the size of risk which is the simple sum of market risk and credit risk. However the portfolio theory suggests that, due to the effect of diversification, the total risk is less than the summation of market and credit risk. This paper investigates and does empirical test to verify the diversification effect in measuring financial firm's integrated risk. We verify the diversification effect between the market risk and credit risk. This paper's contribution is to present the empirical evidence that, considering the relationship between market and credit risk, the integrated risk is less than sum of them. This implication is that the surplus capital may be used for the other purposes, therefore enhancing capital allocation efficiency in view of society as a whole.

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