銀行法上大株主의 利害相衝規制에 관한 硏究 = Conflict of Interest Regulations by Majority Shareholders under the Banking Act of Korea

다국어 초록 (Multilingual Abstract)

Affiliate transactions between banks or their subsidiaries, on the one hand,
and parent companies or non-bank affiliates, on the other hand, may result in
conflict of interests. Furthermore, in case where bank managements are subject to
factual influences from these interested parties, the safety and soundness of banks
may be seriously damaged. The most representative one among these interested
parties is either a majority shareholder or a parent bank holding company who
may have a substantial influence on the elections and dismissals of bank
managements. Almost of all the countries have provided troublesome conflict of
interest transactions and strong fire-walls or chinese-walls against them, thereby
protecting the safety and soundness of banks in the end.
Article 35-2 through Article 35-5 of the Banking Act of Korea are conflict of
interest regulations by majority shareholders modeled on the Sections 23A and 23B
of the U.S. Federal Reserve Act. Section 23A places quantitative limits on affiliate
transactions, forbids depository institutions from purchasing low-quality assets from
their non-bank affiliates, and requires loans by banks or thrifts to their non-bank
affiliates to be fully collateralized. Section 23B prohibits favortism in affiliate
transactions and requires all such transactions to be conducted on arms-length
basis. The Financial Modernization Act, so called the Gramm-Leach-Bliley Act of
1999, extended Sections 23A and 23B to transactions between insured banks and
金容載/ 銀行法上大株主의 利害相衝規制에 관한 硏究139
The Korean Journal of Financial Law, Vol. 2, No. 2 (2005)
Conflict of Interest Regulations by Majority Shareholders
under the Banking Act of Korea
Kim, Yongjae
their financial subsidiaries.
This paper aims to analyze Article 35-2 through Article 35-5 of the Banking
Act of Korea in comparison with the model Act. Part Ⅱ considers briefly the
historial background and content of Sections 23A and 23B of the U.S. Federal
Reserve Act. Detailed analyses of Article 35-2 through Article 35-5 are discussed in
Part Ⅲ through Part Ⅵ. Part Ⅶ is the conclusionary remark of this paper.