The ruling party considers introducing a financial stabilization account..."Prevent liquidity crisis"

People's Power said it will consider introducing a "financial stability account" that preemptively supports financial companies that have increased the risk of insolvency during the financial crisis.

Kim Sang-hoon, chairman of the policy committee, said at a floor meeting that the move is aimed at preventing a liquidity crisis that could hit some financial companies due to the massive withdrawal of deposits and the so-called "bank run."

The Financial Stability Account is a system that allows the Korea Deposit Insurance Corporation to provide funds before insolvency occurs to financial companies facing temporary difficulties by making a temporary emergency funding system permanent.

Chairman Kim explained that it is possible to provide faster support than existing public funds by providing funds with deposit insurance funds from each financial company, and that government finances are not invested separately.