No matter how much it is a’corona special situation’, the recent series of financial regulations makes the advent of the era of’political finance’ beyond’governmental finance’. It is because the anti-market measures poured out as if the grand ruling party blinded by the election victory and financial bureaucrats who were in a hurry to compete with them were driving the financial market into a moribund state. A new specter of’financial openness’, which is as good as the notion of land release of unknown origin, seems to strike our economy.
Just looking at the ‘2021 business plan’ that the chairman of the Financial Services Commission released yesterday is full of’problematic guidelines’ such as △extending the maturity of corona loans and deferring interest △mandatory repayment of principal installments on credit loans △preliminary impact assessment for store closures. All of these are measures that have neglected the essence of the business of’trust industry’ and indiscriminately accepted the demand for passports. In the case of the corona loan ending in March, I do not know the re-extension of the principal maturity, but to force interest deferral is a decision that neglects the organization’s purpose of stabilizing the financial market. If both companies and small business owners who are not able to pay interest are unwillingly embraced, the immediate corona damage will be reduced, but after the pandemic, insolvent detonators will inevitably increase in the overall economy.
The introduction of the credit loan principal installment repayment system following the regulation of credit loans and negative bankbooks is also an overregulation of the two. Since the end of last year, 40% of total debt repayment ratio (DSR) has been applied to credit loans for large loans. The idea of having an outside expert participate in the impact assessment and reporting it to the authorities in case of a store closure is also outside common sense.
The suspicion that the financial authorities’ actions are covered in politics is turning into conviction. A week ago, the position of the Financial Services Commission, which emphasized that’the ban on short selling will end in March’, suddenly changed to “it is difficult to say quickly.” Concerns over the spontaneous response of the ruling party are also increasing day by day. The day after the presidential remarks saying “I will not be compelled” came out with a special law on stopping interest. In recent two or three months, anti-market measures initiated by the ruling party, such as demanding the relaxation of corporate credit rating standards, shaking the foundations of the credit rating industry, and enacting the’Financial Group Integrated Supervision Act’ even though there are laws for each business sector, are in hand. It’s hard to pinch.
It is difficult to find the recognition that’finance is the bloodstream of the economy’ in the passport behavior that lightly ignores the common sense of the market. It is simply a means of welfare and a sub-variable of politics. The influential presidential candidate said, “Let’s limit the maximum interest rate to 10% per year,” and the party’s CEO casually ordered the easing of the deposit rate, the core of management. At the same time, five of the heads of the six major private financial associations are filled with bureaucrats and politicians, and are devoted to the’parachute’. I am afraid of the consequences of the populist politics attack in a situation where the financial market volatility increases, such as the widening gap in long- and short-term treasury bonds and the stock market’s fear index flying high.
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