Ultra large IB to be launched… Only 1 place to be ‘promissory note’?
Kim Dong Wook | east@ | 2017-11-14 10:51:34
Ultra large IB era to be opened
The Korean government has selected five major brokerage firms as super large IBs and declared a full-fledged adventure capital era. It is anticipated that the era of investment banking (IB), which can move away from existing collateral and loan-based practices and make more aggressive investment in adventure companies, is expected to take off in earnest. However, the issue of issuance bills, which is the core business of large-scale IBs, has been approved by Korea Investment.
The Financial Supervisory Commission (FSC) held an ordinary meeting with the participation of finance chairman Choi Jung-shik and the Financial Supervisory Commission of the Korea Financial Intelligence Unit on November 13 and held five large domestic securities firms including Mirae Asset Securities, Samsung Securities, Korea Investment Securities, NH Investment Securities and KB Securities, ) To decide the agenda.
Securities companies can be short-term financing businesses such as issuing a note with a maturity of one year or less at the 200% limit of equity capital designated as a super large IB if they meet the requirement of `KRW 4 trillion or more of equity capital`. At least 50% of short-term financing should be managed by corporate financing. Assets classified as corporate finance are corporate loans, discounts and purchases of notes, corporate securities acquired directly in the issuance market, Conex stock acquired in the distribution market, and corporate bonds below grade A.
However, a short-term financial business (issuance bill business) license, which is considered to be the core business of a large-scale IB, With the exception of Korea Investment & Securities, 4 major IBs are in the process of examining the adequacy of major shareholders and capital adequacy. It is not possible to exclude the possibility that the examination will be suspended.
As a result, securities companies have been selected as large-scale IB operators, but it is expected that it will take considerable time until the ultra-large IB business speeds up. "We will approve one securities company for short-term financial business, but we will proceed with the approval process for other securities companies as soon as the audit is completed."
The Financial Supervisory Service (FSS) is also undergoing further screening at Mirae Asset Daewoo, NH Investment & Securities and KB Securities. A financial expert said, "In the case of a short-term financial approval, a company that has been reviewed by the Financial Supervisory Service has been submitted to the Financial Supervisory Commission through the Securities and Futures Commission," adding.”
"The preparations have been completed so that we can start work together with the appointment of a large-scale IB," a securities company official designated as a large-scale IB said, "Once the foreign exchange business changes are registered in the Ministry of Strategy and Finance.
By Kim Dong Wook east@
[ copyright ⓒ The Digitaltimes ]
The Korean government has selected five major brokerage firms as super large IBs and declared a full-fledged adventure capital era. It is anticipated that the era of investment banking (IB), which can move away from existing collateral and loan-based practices and make more aggressive investment in adventure companies, is expected to take off in earnest. However, the issue of issuance bills, which is the core business of large-scale IBs, has been approved by Korea Investment.
The Financial Supervisory Commission (FSC) held an ordinary meeting with the participation of finance chairman Choi Jung-shik and the Financial Supervisory Commission of the Korea Financial Intelligence Unit on November 13 and held five large domestic securities firms including Mirae Asset Securities, Samsung Securities, Korea Investment Securities, NH Investment Securities and KB Securities, ) To decide the agenda.
Securities companies can be short-term financing businesses such as issuing a note with a maturity of one year or less at the 200% limit of equity capital designated as a super large IB if they meet the requirement of `KRW 4 trillion or more of equity capital`. At least 50% of short-term financing should be managed by corporate financing. Assets classified as corporate finance are corporate loans, discounts and purchases of notes, corporate securities acquired directly in the issuance market, Conex stock acquired in the distribution market, and corporate bonds below grade A.
However, a short-term financial business (issuance bill business) license, which is considered to be the core business of a large-scale IB, With the exception of Korea Investment & Securities, 4 major IBs are in the process of examining the adequacy of major shareholders and capital adequacy. It is not possible to exclude the possibility that the examination will be suspended.
As a result, securities companies have been selected as large-scale IB operators, but it is expected that it will take considerable time until the ultra-large IB business speeds up. "We will approve one securities company for short-term financial business, but we will proceed with the approval process for other securities companies as soon as the audit is completed."
The Financial Supervisory Service (FSS) is also undergoing further screening at Mirae Asset Daewoo, NH Investment & Securities and KB Securities. A financial expert said, "In the case of a short-term financial approval, a company that has been reviewed by the Financial Supervisory Service has been submitted to the Financial Supervisory Commission through the Securities and Futures Commission," adding.”
"The preparations have been completed so that we can start work together with the appointment of a large-scale IB," a securities company official designated as a large-scale IB said, "Once the foreign exchange business changes are registered in the Ministry of Strategy and Finance.
By Kim Dong Wook east@