현행 은행 인가제도의 개선방안 = A study for improving the current Korean banking licensing system

다국어 초록 (Multilingual Abstract)

Today, the number of so-called neobanks, which usually provide financial services only through mobile or internet without offline branches, is increasing significantly worldwide, and they are rapidly encroaching on the business areas of existing banks. In Korea, financial authorities are reviewing how to support innovation and competition in the banking market, and are considering whether to ease regulations on bank entry, introducing small [bank] licenses, and easing bank licensing requirements to assist the establishment of challenger banks.
Looking at overseas cases, the UK introduced the Small Specialist Bank system to promote competition in its domestic banking market and authorized a large number of challenger banks. In the US, while inducing the entry of fintech companies into the financial industry and authorizing fintech companies as national banks to operate throughout the nation, the OCC restricts the deposit-taking business of fintech companies which acquired the Special Purpose National Bank (SPNB) authorization. On the other hand, when approving a fintech company's application for a bank license, the banking licensing authorities in the UK and the US do not stipulate any separate special exceptions or relaxation of authorization requirements targeting internet banks with regard to a fintech company's application.
In the case of Korea, the Banking Act uniformly stipulates minimum capital requirements for each type of bank, but uniform statutory minimum capital requirements do not appear to be helpful in risk-responsive supervision that takes into account the unique circumstances of bank license applicants. In addition, it is necessary to fully utilize the licensing discretion of the supervisory authority to actively impose conditions deemed necessary for financial stability and prevention of risks to the Deposit Insurance Fund and to conduct intensive monitoring for a certain period of time after a bank has been given a main license.
Meanwhile, from the perspective of integrated bank supervision, it is desirable to include banks in a broad sense such as mutual savings banks that are conducting business similar to that of regular banks. Considering this need and the demand for fintech companies to enter the banking industry, it may be helpful to revise the current Banking Act to support the establishment of small banks. By introducing a more relaxed licensing system for small banks and/or a licensing system that limits the scope of business, such as a small license, it could be possible to promote the entry of small banks that meet the lowered entry requirements, and expect these small banks to operate or evolve as so-called challenger banks that compete with and/or coexist with existing banks with their own strategies. However, when reviewing bank license applications, it is necessary to assess risks exposed to each bank applicant and conduct a review proportional to the risks so as not to affect a safe and sound banking system.