| A Study on the Deposit Insurance Coverage and Market Discipline of Securities Firms in Korea |
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Jin Ho Lee |
| 국내 증권사에서 예금보호한도와 시장규율에 관한 연구 |
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이진호 |
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| Abstract |
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This study was to confirm whether the depositors unprotected in the deposit insurance system work a market discipline in the Korean securities companies, and it was to discuss the adequacy of deposit coverage. For it, this study used datum of deposit amounts and depositors of 34 securities companies from the Korea Deposit Insurance corporation (KDIC) for 2006. 9～2011. 9. In this study it was constructed fixed effect panel model utilizing previous research. The empirical results are as follows. There was not the difference of incremental investment amounts between small (protected) and large (unprotected) investors. But it was found that incremental deposit was increased in large investors increasingly. Futhermore, it was found that large investors, particularly 200 (300) million won or more large investors, are sensitive to the capital adequacy (profitability) indicator. As a result, it may be expected the market discipline of them. Consequently, In the securities companies of Korea as it was found of the market discipline of large investors having 200 million won or more, it is considered that deposit coverage of securities firms may be adjusted 200 million won if necessary. Ultimately, if it is accommodated the deposit coverage, it should be considered thoroughly not only qualitative factors but quantitative factors. the qualitative factors may be like the public policy finality and the uniqueness and fairness of financial sectors, and the quantitative factors may be like a protected deposit (depositor) ratio of the insured deposit (depositor), a households’ financial asset, a deposit coverage level of per capita GDP, inflation and income. Considering the different characteristics of the securities firms compared to the commercial bank, it may be highlighted fundamentally why the securities companies should be included in deposit insurance system. But assumed that it could seek to the stability of the entire financial markets by protecting the property of customers in securities companies, the results of this paper is expected to present the timely policy orientation of the financial supervisory authorities. |
| Key Words:
도덕적 해이,시장규율,예금보험,예금보호한도,증권사,Deposit Insurance,Deposit Insurance Coverage,Market Discipline,Moral Hazard,Securities Firms |
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