The outstanding balance of promissory notes, a key funding tool securities firms use to raise capital from customers, has surpassed 54 trillion won ($40 billion). With new promissory note operators emerging under the government's push to expand investment banking (IB), the market is expected to maintain solid growth this year. While observers anticipate accelerated money movement from the banking sector to the securities industry, concerns are also rising that intensifying competition could strain profitability and liquidity.
According to financial authorities on Wednesday, the Securities and Futures Commission under the Financial Services Commission reviewed Samsung Securities' (016360.KS) promissory note business license application. If approved at the FSC's regular meeting on January 15, Samsung Securities will become the eighth comprehensive financial investment business operator to enter the promissory note market.
