Text Fwd: IMF and Northeast Asian banks clash over West’s financial regulations

'Finance Minister Yoon Jeung-hyun, left, speaks with Dominique Strauss-Kahn, managing director of the International Monetary Fund, during the South Korea-IMF Conference in Daejon, July 13.'

Hankyoreh
IMF and Northeast Asian banks clash over West’s financial regulations
:The IMF defended strong regulations for prevention, while Asian banks said the policy centers around Western countries
July 14, 2010


By Ahn Seon-hee

“It is almost like taking medicine for a sickness you don’t even have.”

“Sometimes you also have to take medicine for prevention.”

On Tuesday, the second day of an “Asia Conference” hosted by the International Monetary Fund and the Ministry of Strategy and Finance in Daejeon, opinions were divided between the IMF and participants over financial regulations that have been stepped up in the wake of the global financial crisis. The IMF actively defended the stronger regulations, but Asian countries, which had no major problems with their banks during the latest financial crisis, showed a tepid response. This represents a 180-degree turn from the Asian foreign exchange crisis over ten years ago, when the IMF “forced” Asian countries to relax their regulations.

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