• Title/Summary/Keyword: Bank Risks

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Improving Logistics Services of LSP to Minimize Logistics Outsourcing Risks in the Ceramic Industry

  • SUMANTRI, Yeni;GAPSARI, Femiana;HADIKO, Gunawan;PRAMUDITHA, Vania Putri
    • Journal of Distribution Science
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    • v.20 no.6
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    • pp.87-97
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    • 2022
  • Purpose: In the last few decades, the ceramic industry has become an important industry for Indonesia. The resulting product must be handled properly, because if material & product handling is not carried out properly it will impact on the quality of product. Based on the logistics outsourcing research gaps in the ceramics industry to logistics service provider (LSP), this study aims to analyze the logistics service improvement of LSP in accordance with the needs of the ceramic industry to minimize logistics outsourcing risks. Research design, data and methodology: In the field study, observations, interviews and surveys related to production and logistics activities in the ceramic industry & LSP were carried out. The next step is to analyze logistics service of LSP needed by the ceramic industry. Results: The final findings obtained from this research are the LSP need to improve 1) knowledge; 2) technology capability; 3) relationships; 4) service quality; 5) innovation; 6) commitment in services. Conclusion: In order to reduce logistics outsourcing risks in the ceramic industry, LSP in Indonesia need to improve the logistics services required by the ceramic industry with a focus on six areas of improvement.

Advanced Mandatory Authentication Architecture Designed for Internet Bank (인터넷은행을 위한 개선된 본인확인 구조)

  • Hong, Ki-seok;Lee, Kyung-ho
    • Journal of the Korea Institute of Information Security & Cryptology
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    • v.25 no.6
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    • pp.1503-1514
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    • 2015
  • Non-face-to-face real name verification policy that financial authorities announced, in order to secure a face-to-face or more of accuracy, are in principle of multi check. The business model and legal entities of Internet banks is different from existing Internet banking. Relpacing real name verification from face-to-facd to non-face-to-face while maintaining the structure of identification can not only cause inconvenience to a first time member, but also can be more vulnerable to verious security risks. In this study, to evaluate a service level of a bank of the Internet, and provide an improved identification of the structure such that the registration and use of differentiated services is performed in accordance with the evaluation. In addition, the security that may occur with respect to Bank of the Internet to establish a vulnerability and attack model, the results of the analysis of the safety of the step-by-step security attributes and services of the authentication medium of each attack model, existing the safer than Internet banking, confirmed the usefulness in user registration guide.

How to Reflect Sustainable Development, exemplified by the Equator Principles, in Overseas Investment (해외투자(海外投資)와 지속가능발전 원칙 - 프로젝트 파이낸스의 적도원칙(赤道原則)을 중심으로 -)

  • Park, Whon-Il
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.31
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    • pp.27-56
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    • 2006
  • Today's financial institutions usually take environmental issues seriously into consideration as they could not evade lender liability in an increasing number of cases. On the international scene, a brand-new concept of the "Equator Principles" in the New Millenium has driven more and more international banks to adopt these Principles in project financing. Sustainable development has been a key word in understanding new trends of the governments, financial institutions, corporations and civic groups in the 21st century. The Equator Principles are a set of voluntary environmental and social guidelines for sustainable finance. These Principles commit bank officers to avoid financial support to projects that fail to meet these guidelines. The Principles were conceived in 2002 on an initiative of the International Finance Corporation(IFC), and launched in June 2003. Since then, dozens of major banks, accounting for up to 80 percent of project loan market, have adopted the Principles. Accordingly, the Principles have become the de facto standard for all banks and investors on how to deal with potential social and environmental issues of projects to be financed. Compliance with the Equator Principles facilitates for endorsing banks to participate in the syndicated loan and help them to manage the risks associated with large-scale projects. The Equator Principles call for financial institutions to provide loans to projects under the following circumstances: - The risk of the project is categorized in accordance with internal guidelines based upon the environmental and social screening criteria of the IFC. - For Category A and B projects, borrowers or sponsors are required to conduct a Social and Environmental Assessment, the preparation of which must meet certain requirements and satisfactorily address key social and environmental issues. - The Social and Environmental Assessment report should address baseline social and environmental conditions, requirements under host country laws and regulations, sustainable development, and, as appropriate, IFC's Environmental, Health and Safety Guidelines, etc. - Based on the Social and Environmental Assessment, Equator banks then make agreements with borrowers on how they mitigate, monitor and manage the risks through a Social and Environmental Management System. Compliance with the plan is included in the covenant clause of loan agreements. If the borrower doesn't comply with the agreed terms, the bank will take corrective actions. The Equator Principles are not a mere declaration of cautious banks but a full commitment of lenders. A violation of the Principles in the process of project financing, which led to an unexpected damage to the affected community, would not give rise to any specific legal remedies other than ordinary lawsuits. So it is more effective for banks to ensure consistent implementation of the Principles and to have them take responsible measures to solve social and environmental issues. Public interests have recently mounted up with respect to environmental issues on the occasion of the Supreme Court's decision (2006Du330) on the fiercely debated reclamation project at Saemangeum. The majority Justices said that the expected environmental damages like probable pollution of water and soil were not believed so serious and that the Administration should continue to implement the project seeking ways to make it more environment friendly. In this case, though the Category A Saemangeum Project was carried out by a government agency, the Supreme Court behaved itself as a signal giver to approve or stop the environment-related project like an Equator bank in project financing. At present, there is no Equator bank in Korea in contrast to three big banks in Japan. Also Korean contractors, which are aggressively bidding for Category A-type projects in South East Asia and Mideast, might find themselves in a disadvantageous position because they are generally ignorant of the environmental assessment associated with project financing. In this regard, Korean banks and overseas project contractors should care for the revised Equator Principles and the latest developments in project financing more seriously. It's because its scope has expanded to the capital cost of US$10 million or more across all industry sectors regardless of developing countries or not. It should be noted that, for a Korean bank, being an Equator bank is more or less burdensome in a short-term period, but it must be conducive to minimizing risks and building up good reputation in the long run.

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A Method for Calculating Exposure Risks of Privacy Information based on Website Structures (웹사이트의 구조를 고려한 개인정보 노출 위험도 계산 기법)

  • Lee, Sue Kyoung;Son, Jin Sik;Kim, Kwanho
    • The Journal of Society for e-Business Studies
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    • v.21 no.1
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    • pp.1-14
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    • 2016
  • This research proposes a method that aims to evaluate the risk levels of websites based on exposure risks of privacy information. The proposed method considers two aspects as follows. First, we define the risk levels of each privacy information according to its own inherent risk. Second, we calculate the visiting probability of a webpage to measure the expected of the actual exposure of privacy information on that webpage. In this research, we implemented an system to prove that automatically collects websites and calculates their risk levels. For the experiments, we used a real world dataset consisting of a total of websites for 4 categories such as university, bank, central government agency, and education. The experiment results show that the websites in the bank category are relatively well managed, while the others are needed to cope with the exposure of privacy information. Finally, the proposed method in this research is expected to be further utilized in establishing a priority-based approach to alleviate of the privacy information exposure problems.

Some Rules of Law for Forfaiting Using Bills of Exchange or Promissory Notes (어음을 이용한 포페이팅의 법적 원리)

  • Hur, Hai-Kwan
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.43
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    • pp.169-198
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    • 2009
  • This paper sees some legal phases of the forfaiting transactions performed by using bills of exchange (drafts) or promissory notes. It focuses on the issues of the endorsement without recourse and the aval under the Korean statute for such negotiable instruments which is enacted by succeeding to the Convention Providing a Uniform Law For Bills of Exchange and Promissory Notes (Geneva, 1930) of the League of Nations. This paper purposes to give basic legal guides for forfaiting participants in order for them to be able to prevent and solve some problems caused by lack of understanding for relevant rules of law. Forfaiting is a useful technic as it provides financing for international export businesses by enabling forfaiters to discount future payment obligations on non-recourse basis. It gives benefits to exporters by removing political, transfer and commercial risks of importers or their country. Also it protects exporters from the risks of the increase of interest rates and the fluctuation of exchange rate as well. In traditionally normal forfaiting transactions, exporter of goods generally takes promissory notes or accepted drafts from importers in payment for the price of goods. Further, when the exporter is not comfortable with the importer's credit or is not confident whether the importer will pay the accepted drafts or the promissory notes as they come due, the exporter nomally requires the importer to make the importer's bank (avalizer or guarantor) add an aval, which is made by the written expression of intention, the words of "per aval", and the guarantor's signature on the drafts or promissory notes. The exporter endorses without recourse to transfer the drafts or the promissory notes to the forfaiter, typically a bank, who purchases the drafts or the promissory notes without recourse.

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Financial Intermediation and the Post-Crisis Financial System with Implications for Korea (위기 이후 금융중개와 금융제도 변천 및 한국에 대한 시사점)

  • Shin, Hyun Song
    • KDI Journal of Economic Policy
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    • v.32 no.1
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    • pp.1-26
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    • 2010
  • Securitization was meant to disperse credit risk to those who were better able to bear it. In practice, securitization appears to have concentrated the risks in the financial intermediary sector itself. This paper outlines an accounting framework for the financial system for assessing the impact of securitization on financial stability. If securitization leads to the lengthening of intermediation chains, then risks become concentrated in the intermediary sector with damaging consequences for financial stability. Covered bonds are one form of securitization that do not fall foul of this principle. I discuss the role of countercyclial capital requirements and the Spanish-style statistical provisioning in mitigating the harmful effects of lengthening intermediation chains. For Korea, the stability of funding emerges as a key consideration. Covered bonds may play a role in stabilizing the funding arrangement for banks.

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A study on the problems in appling CIF, Incoterms 1990 into the contract of sale. (1990년(年) 인코텀즈에 따른 CIF조건(條件)의 활용상(活用上)의 문제점(問題點))

  • Choi, Myung-Kook
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.6
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    • pp.11-51
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    • 1993
  • This study is focused on the problems and the suggestions of proper ideas for solving them which are arisen from appling CIF, Incoterms 1990 into the contract of sale after reviewing of the contents of traditional CIF contract and the main changes of CIF, Incoterms 1990. This study summerized as follows: First, when the seller provide the buyer with non-negotiable sea waybill or inland waterway document instead of negotiable bill of lading, it is my feeling that the essence of symbolic delivery in traditional CIF contract is fading. And if the buyer has paid for the goods in advance, or a bank wishes to use the goods as security for a loan extended to the buyer, it is not sufficient that the buyer or the bank be named as consignee in a non-negotiable document. This is true because the seller by new instractions to the carrier could replace the named consignee with someone else. To protect the buyer or the bank it is therefore necessary that the original instructions from the seller to the carrier to deliver the goods to the named consignee be irrevocable. Second, CIF term can only be used for sea and inland waterway transport. When the ship's rail serves no practical purposes such as in the case of roll-on/roll-off or container traffic, CIP term instead of CIF term is more appropriate to use. Third, the EDI method still contains many legal and technical problems to be solved in order to be used thoroughly' in the international sale of goods. Therefore, the parties wishing to replace the traditional paper-based trade documents by electronic messages must exchange the agreement on EDI each other in order to prevent and sol ye unexpected problems. Forth, it may be that the goods are to be carried in bulk without such marking or naming of consignee as would amount to appropriation. Then the risk will not pass until effective appropriation has been made. Therefore, the seller needs to appropriate by issuing of separate bills of lading or delivery orders for parts of the bulk cargo. And in case the goods are bought while they are carried at sea, some problems on the passing of risk would arise. One possibility is that the buyer might have to assume risks which have already occured at the time when the contract of sale is entered into force. The other possibility would be to let the pissing of the risk concide with the time when the contract of sale is concluded. The parties are advised to ascertain the applicable law and any solution which might follow there form. Finally, Incoterms are restricted to deal with the main principles for the division of functions, costs and risks between the parties and the rest is left to their individual contract as supplemented by the custom of the trade, the individual terms of the contract of sale and the applicable law. Thus, the parties are advised to ascertain the applicable law on their individual contract of sale in order to solve the problems on the transfer of property, the remedy and so on.

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The Possibility and the Way to Introduce of Venture Debt to Encourage Growth of Ventures (벤처기업의 성장 촉진을 위한 벤처부채의 가능성과 도입방안)

  • Hong, Jong Soo;Na, Sumi;Park, Jaesung James
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.15 no.4
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    • pp.17-25
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    • 2020
  • Venture debt is a prominent funding tool to promote scale-up of ventures. In the growth stage, venture firms that need large-scale funding can accelerate their growth by leveraging venture debt without diluting their shares, while venture capitals can quickly recollect their investments by accelerating the growth of the ventures they invest. By supplying venture debt, banks can diversify their asset primarily concentrated on loans, and improve the return on assets. As in the case of Silicon Valley Bank, a leading venture lender, closer cooperation between the two agents is essential to supply venture debt. One is the venture capital, an equity capital supplier, and the other is the bank, a debt capital supplier. To this end, we propose "credit risk sharing venture loans" and "venture loan pooling". The former encourages banks' participation in the venture debt market where the manager of Korean Fund of Funds, KVIC and policy guarantee schemes such as KODIT and KIBO screen or partially absorbe the risks inherent in venture loans. The latter reduces the burden of banking on individual venture loans through securitization.

Developing Green Bank Operation In India And Vietnam: Comparison And Evaluation

  • DANG, Thuy T.;NGUYEN, Trang Thu
    • Asian Journal of Business Environment
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    • v.11 no.3
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    • pp.33-43
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    • 2021
  • Purpose: The purpose of the paper is to assess the greening of investment flows as well as the orientation of financial sources of effective environmental protection. Both India and Vietnam are considered to be two Asian countries that are radically affected by global climate change. Governments of the two countries have implimented numerous measures against environmental pollution through the banking and finance sector. Developing green banking operations in India and Vietnam is a new direction in the socio-economic development strategy coupled with effective environmental protection. Research design, data and methodology: The data was mainly based on Asia Development Bank Institution (ADBI) and Bank of India (BOI) from 2015 - 2018. This paper focused on comparing and evaluating the development of green banks between the two countries. Result: The banks' contribution to green growth and green economy is shown in two basic aspects: (i) the connection between organizations, and individuals, and management process for investment projects, including environmental risks; and (ii) the operation of banks has a direct impact on the environment, through the application of technology to pay documents and apply e-banking. Conclusion: Paper reflects, compares and evaluates green banking operations in India and Vietnam to provide new directions aiming to develop financial and economic system along with effective and efficient step toward climate change control. India's green banking operations, after a specific assessment, will be lessons for the Government of Vietnam during the process of socio-economic development and environmental protection.

A Comparative Study on the Risk Management for Forfaiting of Foreign Exchange Bank in Korea (국내 외국환은행의 포페이팅 위험관리 비교 고찰)

  • Kim, Chang-Sun
    • 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.