IDEAS home Printed from https://ideas.repec.org/p/zbw/kdifoc/335927.html

Enhancing the prudential framework for securities firms

Author

Listed:
  • Hong, Jong Soo

Abstract

Despite increasing risk exposure from expanding assets and leverage among large securities firms, the current Net Capital Ratio (NCR) framework does not adequately capture these risks. To strengthen risk sensitivity while maintaining a balance between financial soundness and industry growth, the NCR formula for large securities firms should revert to its pre-2016 structure, and a differentiated regulatory approach tailored to business scope and risk characteristics should apply to small- and medium-sized firms.

Suggested Citation

  • Hong, Jong Soo, 2025. "Enhancing the prudential framework for securities firms," KDI Focus 147, Korea Development Institute (KDI).
    • Handle: RePEc:zbw:kdifoc:335927
    DOI: 10.22740/kdi.focus.e.2025.146
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/335927/1/1949891747.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22740/kdi.focus.e.2025.146?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:kdifoc:335927. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/kdiiikr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.