• Korea Trade Review
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• v.44 no.3
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• pp.191-202
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• 2019

Despite innovative efforts to accommodate changes in the payment environment, the new types of settlement risks that are emerging require preemptive and proactive responses. Therefore, Korea should complement and develop large-value funds payment system operation and risk management policies by introducing international standards and linking with advanced financial institutions. This study examines the major issues such as the development process and characteristics of the large-value funds payment system of the two countries, the operation policy of the central bank, and the risk management policy by comparing the US Fedwire with the Korea Bok-Wire+. In addition, policy implications are suggested for efficient operation and development of Bok-Wire+.

• Korea Trade Review
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• v.43 no.5
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• pp.1-23
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• 2018

Forfaiting is a trade finance facility whereby financial institution purchases accounts receivable from exporters on a without recourse basis to resolve exporters' credit risk. Since the effectuation of Uniform Rules for Forfaiting(URF 800), exporting companies have been interested in forfaiting and foreign exchange banks in South Korea have expanded products related to forfaiting. However, the risk management for dealing with forfaiting needs improvement. In this paper, we will compare current forfaiting risk managements between foreign exchange banks and foreign banks in South Korea by studying the agreements for each bank and standard forfaiting agreements of the ICC. There is a significant gap for risks covered and points of reserve(points of recourse) between each bank. This work suggests the need for unification for these gaps in order to enhance risk management for exporting companies and foreign exchange banks in South Korea.

• International Commerce and Information Review
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• v.12 no.1
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• pp.35-54
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• 2010

This article explored the bank's responsibilities in electronic payment system between Korea and U.S.A. In order to complete my research object, I used Article 4A of the U.C.C. and EFTA of 1978 and by Electronic Financial Transaction Act of Korea as a analytic instruments. I also adapted America's various regulations to regulate concerned parties(banks). The system of this article is going to display as fellows; First, I presented recent trend and legal stabilities of electronic payment in this article. Second, I focuses on the allocation of risk of loss caused by ambiguous term in payment orders that do not express the subjective intention of the senders. I also did analyze the solution procession of error occurring in course of send of payment order. Third, In any action which involves a customers's liability for an unauthorized electronic fund transfer, the burden of proof is upon the financial institution to show that the electronic fund transfer was authorized. Forth, Customers have to report the error and unauthorized electronic fund transfer after awaring of it. Then bank will be liable for such a unauthorized electronic fund transfer. But If customer's failure to report, the bank has exemptions. Lastly, In order to prevent or detect the unauthorized electronic fund transfer, bank will agree with custom to establish a commercially reasonable security procedure, while bank has duties to notify in order to decrease the loss resulted from unauthorized payment order in korea law.

• Journal of the Korean Data and Information Science Society
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• v.25 no.6
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• pp.1591-1598
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• 2014

The reviews of the balance sheet of commercial banks showed that loan item constitutes the largest portion of bank's assets. Although the sector has highest rate of profit, it possesses the greatest risk. Identifying factors that can contribute in lifting-up the loan repayment rate of customers of Hawassa district commercial bank is the major goal of this study. A sample of 183 customers who took loan from October, 2005 to April, 2012 was taken from the bank record. Kaplan-Meier estimation method and univariate Cox proportional hazard model were applied to identify factors affecting bank loan repayment rate. The result from Kaplan-Meier survival estimation revealed that the loan repayment rate is significantly related with loan type, and previous loan experience, educational level and mode of repayment. The log-rank test indicates that the survival probability of loan customers is not statistically different in repaying the loan among groups classified by sex. Moreover, the univariate Cox proportional hazard model result portrayed that educational level, having previous loan experience, mode of repayment, collateral type and purpose of loan are significantly related with loan repayment rate of customers commercial bank. Hence, banks should design loan strategies giving special emphasis on the significant factors while they are giving loans to their customers.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.39
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• pp.59-85
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• 2008

An independent bank guarantee(aka an independent guarantee) is provided as an security on a principal obligor's performance of his obligation, and a guarantor should pay the guaranteed amount only upon a beneficiary's written demand. A standby letter of credit has been used in the United States, since it was construed that a bank should not issue a guarantee. There was wide misunderstanding that a standby letter of credit differs from an independent bank guarantee. However, a standby letter of credit is the same security as an independent bank guarantee, and in international business a standby letter of credit is not differentiated from a independent bank guarantee. An independent bank guarantee are independent from the underlying contract, unconditional, and irrevocable. And a guarantor should pay upon written demand without proving a principal obligor breaches the underlying contract. These features of an independent bank guarantee has been abused in international transactions. Thus it has been proposed that some exceptions to the features of an independent bank guarantee should be allowed. United Nations Convention on Independent Guarantees and Standby Letter of Credit(1995) stipulates some exceptions to payment obligation. Export bond insurance, a part of export insurances, operated by the Korea Export Insurance Corporation under the Export Insurance Act, is used as a security for unfair calling by a beneficiary under an independent bank guarantee. Most of the export subsides by the government are prohibited under WTO's Agreement on Subsidies and Countervailing Measures. However, as export insurance is allowed under the WTO, it operates a significant role in enhancing the export. In the event that export bond insurance is provided for a guarantor, an obligor who is subject to recourse by a guarantor, can be exempt from the recourse in case of unfair calling. The Korea Export Insurance Corporation, an insurer, bears unfair calling risk by a beneficiary. Generally it is understood that a demand shall be made before the expiry of an independent bank guarantee. However this is not absolutely true, it shall be decided by URDG, ISP98, the governing law.

• The Korean Journal of Financial Management
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• v.6 no.1
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• pp.1-11
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• 1989

• Journal of the Korean Operations Research and Management Science Society
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• v.16 no.2
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• pp.51-51
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• 1991

Recently financial institutions in Korea are experiencing an unfamiliar challenge in terms of their operational risk management due to the volatility of global financial market and the incessant development of new financial products. In this paper, we present an AHP(Analytic Hierarchy Process) model to evaluate the effectiveness of commercial softwares for risk management in banking. The AHP model considers software's performance. utility, serviceability and durability as major evaluation criteria. The weight of each criterion is generated by the questionnaire survey given to practitioners in risk management in domestic commercial banks.

• Korean Management Science Review
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• v.16 no.2
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• pp.51-59
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• 1999

Recently financial institutions in Korea are experiencing an unfamiliar challenge in terms of their operational risk management due to the volatility of global financial market and the incessant development of new financial products. In this paper, we present an AHP(Analytic Hierarchy Process) model to evaluate the effectiveness of commercial softwares for risk management in banking. The AHP model considers software's performance. utility, serviceability and durability as major evaluation criteria. The weight of each criterion is generated by the questionnaire survey given to practitioners in risk management in domestic commercial banks.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.2
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• pp.1-13
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• 2009

In this paper, we develop theoretical game models to determine the level of government subsidies for banks to provide policy loans to Innovative SMEs(small and medium sized enterprises) through banks, which otherwise would not finance them for the sake of their own profitability. For this, we compare net cash flows of each bank using different strategies against high risk innovative SMEs. A bank can decide whether to provide them loans or not In each period. Following Kim(2003)'s Infinite horizon model on the soft budget constraint, we introduce a situation in which banks compete against each other for higher net long-term payoffs from their loans to innovative SMEs and non-innovative SMEs. From the models, we show that competition among banks in general leads to a tighter decision against innovative SMEs, as a Nash equilibrium. It is not because the government bank is simply loose in providing loans, but because competition among commercial banks for fewer riskier borrowers results in tighter loan decisions against innovative SMEs. Thus, the competitive market for policy loans to innovative SMEs fails to reach the socially optimal level of loans for innovative SMMs. Commercial banks in the competitive market may require additional supports from the government to make up for the differences in their payoffs to support innovative SMEs, possibly much riskier due to moral hazards and poor discounted cash flows. The monopolistic government bank might also request such supports from the government to fund otherwise unqualified SMEs. We calculate an optimal level of governmental support for banks to guarantee funding such high-risk innovative SMEs over periods without deviating from their optimal Nash equilibrium policies.

• Parasites, Hosts and Diseases
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• v.61 no.3
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• pp.304-309
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• 2023

Intestinal parasitic infections are a public health burden and a major cause of illness in developing countries. The diseases lead to various health threats, including growth retardation and mental health-related disorders, especially in children. We assessed the risk factors for intestinal parasitic infections among children aged 12-59 months residing in Nyamasheke District, Rwanda. A cross-sectional descriptive study was conducted using secondary data from 1,048 children aged 12-59 months whose stool samples were examined for the presence of intestinal parasites and whose results were registered in the laboratory information system in 2020. The prevalence of intestinal parasites in children aged 12-59 months was 53.2%. The dominant parasites were Ascaris lumbricoides (13.1%), followed by Giardia lamblia (10.9%), Entamoeba histolytica (7.9%), Trichuris trichiura (6.5%), hookworms (1.7%), and Taenia species (1.4%). A significant association was observed between intestinal parasites and the literacy of mothers or children's caregivers (odds ratio (OR)=5.09, P<0.001). Children from farming households were 2.8-fold more likely to contract intestinal parasitic infections than those from nonfarming households (OR=2.8, P<0.001). A significant association was also observed between intestinal parasites and food safety (OR=4.9, P<0.001). Intestinal parasitic infections were significantly associated with hand hygiene practices after using the toilet and washing fresh fruits before eating (P<0.001). The information gathered will help public health providers and partners develop control plans in highly endemic areas in Rwanda.