II. What Are Credit Derivatives?
Derivatives are defined as the exchange or contract which has economic values deriving from the reference assets or index. According to their types, there are overall forward, future, option, and swap. Derivatives are the financial derivatives, which are enabled to trade in the market while consisting of separating the credit risk only to the holder of basic p
What is Bad Bank?
Special Purpose Company
Purchasing insolvent obligations and assets
separate management and specialized treatment
Bad Bank when IMF occurred
Loan about 150 - trillion won from IMF
Constitute a ‘fund for dealing of insolvent obligation’ through issuing bond, Purchase insolvent obligations of financial institution
Issue products based on underwritten insolven
ⅱ) Insolvency of enterprise and bank
- Insolvency of enterprise
In 1997, average debt ratio of Korea enterprises was 333%. It was relatively higher than that of USA(159%) and Japan(206%)
It caused insolvency of the enterprises, which lead to major companies went bankrupt.
- Insolvency of bank
at that time, Many Chiefs of financial organizations was sent from above(낙하산 인사).
insolvent enterprises and banks according to the demand of IMF.
- As a result, we lose the financial independence and a large portion of profit went to foreign capital and foreign investor.
- It means that no matter how the people may work and earn money, economic outcomes was not the part of the people.
- Eventually, most of Koreans has suffered unstable life except some people.
The M
Q & A
LATIN AMERIC
외 채 위 기
대외채무에 대해 지불불능상태에 처하게 되는 것으로 채무 변제능력을 상실한 지급불능(insolvency) 상태인 경우와 채무 변제능력은 남아 있으나 단기적인 외화유동성 부족으로 인해 채무변제를 하지 못하는 유동성부족(illiquidity) 상태인 경우로 구분할 수 있다.
기업도산의 징후
도산(bankruptcy)은 기업이 환경에 적응하지 못하여 파경(破鏡)에 이르거나, 최소한의 필요이익을 확보하지 못하여 적자경영이 누적될 경우, 또는 기술적 불능(technical insolvency)상태에 있을 경우, 기업운영이 불기능한 상태가 되어 다음과 같은 도산과정을 거치게 된다.
기업의 도산과정
벤처기업의 부실관리
I. 기업부실의 개념과 원인
일반적으로 기업의 부실은 경제적 부실(economic failure), 지급불능(insolvency), 그리고 파산(bankruptcy)을 의미한다.
경제적 부실이란 기업의 총 수익이 총비용에 미달하는 경우, 기업의 투자수익률이 자본 비용에 미달하는 경우 등 주로 기업의 수익성 저
upon S&L banks due to lobbying. However, the problem became too sever to conceal and Paul Volcker decided to deal with this matter with high interest rate. While the policy worked in containing inflation, depression in market &and economy occurred. In the end, wide spread of insolvency was inevitable.
Resolution of the Crisis
US government had to spend public fund to deal with the Crisis.