신용협동조합 감독제도의 개선

Abstract

Several points to be improved for the Credit Union are mentioned in this essay. Under the current Credit Union Act, net asset value is the only standard to evaluate management soundness. This may check the credit risk, however, it can not reach its inspection arm to market risk and operational risk. Moreover, it does not reflect the weight depending on the risk. Such a standard is insufficient for a Great Credit Union (like Credit Union having more than $ 100 billion assets) in terms of its engagement to the competition with general financial institutions. Therefore, a new standard of BaselⅡ is necessary for a Great Credit Union. Since an evaluation of Management Situation about Credit Union adopts CAMEL system, it can not but fail manage risks. The Union should adopt CAMELS system that includes 'Sensitivity to Market Risk'. PERLS system, is also in need of adoption for an efficient and effective supervision. Supervisiont from outside of the union needs improvement for the efficiency. Unions with more than $30 billion of assets are the auditing targets now and the targets should be revised to the unions with more than $50 billon. For the rest of the unions otherwise, I suggest to adopt public auditing system. Unions with a Financial Supervisory Service's inspection are exempted from outside auditing under the current Credit Union Act. The exemption objects should be expanded to the union with National Credit Union Federation of Korea's inspection. Further, under the certain conditions, National Credit Union Federation of Korea should play the actual role of supervising Great Credit Unions to improve both audit system's efficiency and depositor's credibility. Regarding Credit Union's characteristic that it premises common bond, internal control by internal audit can be more efficient. I suggest unions to create a responsible management atmosphere by tightening qualification of executives. In addition, more independency should be empowered to the executives and it is desirable for unions to implement the job- rotation system. For the illegal action of union members, they should be strictly hold civil and criminal liability. Lastly, in case of unions and National Credit Union Federation of Korea's breach of Credit union Act, we need to have a system to impose a fine on unions. Since it has no validity to grant powers on a finance committee to control executives, I believe we should adopt a system to have executives' salary reduced. With the proposal for improvement, I expect the days come for Credit Union to fill gaps in financial demand and contribute to Korea's financial development by accomplishing soundness and comparativeness in this fast changing society.