Trang Chủ
Given the increasing interconnectedness of global financial markets, the orderly resolution of cross-border banks present a significant challenge to bank resolution authorities and deposit insurers. Acting as Korea’s bank resolution authority, the KDIC organized the CSE program to enhance the efficiency of information exchange and cooperation among deposit insurers and financial institution resolution authorities in the region. In addition to the overarching goal, the exercise focused on specific objectives, including: (i) validating and enhancing communication channels; (ii) strengthening mutual understanding; (iii) assessing feasibility; (iv) practicing coordinated decision-making and information sharing; and (v) identifying areas for improvement.
The CSE program brought together 10 agencies from 7 countries and territories in the region, namely Korea, Indonesia, Japan, the Philippines, Singapore, Taiwan, and Vietnam. Participants were primarily agencies with resolution mandates within national financial safety nets, including several central banks, financial services agencies, monetary authorities, and deposit insurers.
Under the program, participating agencies collectively analyzed a simulation involving "Alpha Bank"—a systemically important bank in Korea with branches in the participating jurisdictions. The hypothetical scenario assumed the insolvency of Alpha Bank and its overseas branches. Participants then discussed methods for resolving the bank in accordance with each country's legal regulations across three stages: (1) Pre-resolution, (2) Resolution preparation, and (3) During resolution.
During the exercise, the DIV representative actively engaged in discussions, outlining Vietnam's regulatory framework on bank resolution and offering valuable insights regarding cross-border coordination and crisis management capabilities.
In the conclusion of the program, DIV Deputy General Director Phan Thi Thanh Binh thanked KDIC representatives and fellow participants for their insightful and valuable contributions. She also expressed her hope for more exercises of this kind to assist relevant agencies in maintaining close cooperation, thereby ensuring the effective resolution of failed credit institutions and contributing to the stability of the financial and banking sectors in the future.
Department of Research and International Cooperation (translation)
