FSS urges local savings banks to implement stringent risk management

FSS urges local savings banks to implement stringent risk management

Financial Supervisory Service (FSS) Governor Jeong Eun-bo speaks during a meeting with local savings bank CEOs at Hotel President in central Seoul, Tuesday. Courtesy of FSS

By Anna J. Park

During a meeting with local savings bank chiefs, Financial Supervisory Service (FSS) Governor Jeong Eun-bo stressed the need for meticulous risk management on the part of savings banks during this time of continuing uncertainty in the global economy.

The FSS chief urged domestic savings banks to take stringent voluntary supervisory approaches in order not to repeat any previous unfortunate incidents such as the mass run for bank withdrawals that took place in 2011, when approximately 100,000 customers suffered damages as dozens of savings banks were closed down. More than 27 trillion won ($23 billion) of public money was caught up in the situation, yet only less than half of this money, or 13.4 trillion won, has been retrieved, after 10 years.

“Recently, the internal and external economic situations are as uncertain as ever, due to concerns over recovery and sluggish growth. Accumulated household debts also remain a potential risk factor that could accompany a radical correction in asset prices, amid increasing interest rates. Following the global financial crisis, the fall of asset prices led to the 2011 bank run on local savings banks,” FSS chief said during the meeting. “That ‘bank run’ became a big burden to the economy, resulting in colossal damages to depositors, and the public money injected into it still hasn’t been fully recovered.” Jeong continued.

“Insolvency on the part of savings banks should never again be transferred as risks to the entire financial system,” FSS chief stressed.

FSS urges local savings banks to implement stringent risk management

Financial Supervisory Service (FSS) Governor Jeong Eun-bo, third from left desk, speaks during a meeting with local savings bank CEOs at Hotel President in central Seoul, Tuesday. Yonhap

The remarks by the country’s top financial policy regulator are aimed at reminding the country’s leading savings banks to take detailed measures in terms of maintaining their soundness. The FSS chief also said that it will introduce a differentiated supervisory system that will fit each bank’s asset size, considering the highly differentiated asset sizes among savings banks.

At the same time, the governor reiterated his repeated commitment to improving regulations that prohibit savings banks’ participation in loan consortiums, so that the banks can provide further liquidity to local potential businesses.

The attendees of Wednesday’s meeting included six leaders of local savings banks: Hana Savings Bank CEO Oh Hwa-kyung, Incheon Savings Bank CEO Park Chan-jong, Jinju Savings Bank CEO Park Ki-kwon, Star Savings Bank CEO Yang Soon-jong, SBI Savings Bank CEO Lim Jin-gu and Kiwoom Savings Bank CEO Huh Heung-beom. National savings bank association chairman Park Jae-sik was also present at the meeting.

News Related

OTHER NEWS

Members of Moon's entourage on Middle East visit test positive for COVID-19

President Moon Jae-in attends a meeting at Cheong Wa Dae in Seoul, Jan. 26. Some members of Moon’s entourage on a visit to the Middle East tested positive for COVID-19 ... Read more »

'All of Us Are Dead' will take K-zombie movies to next level: director

Clockwise from top left, actors Lim Jae-hyeok, Lee Yoo-mi, Park Ji-hu, Cho Yi-hyun, Lomon, and Yoo In-soo, director Lee Jae-kyoo and actor Yoon Chan-young pose during an online press conference ... Read more »

[Reporter's Notebook]Koo's leadership at core of LG's rapid growth

By Kim Hyun-bin LG Group has been moving up the business ladder to take over second place in market capitalization. With its successful listing of LG Energy Solutions (LGES), the ... Read more »

Samsung Biologics to acquire Biogen's entire stake in Samsung Bioepis for $2.3 billion

Samsung Bioilogics’s office in Songdo, Incheon / Courtesy of Samsung Biologics Samsung Biologics Co., the biotech arm of South Korea’s Samsung Group, said Friday that it has reached a deal ... Read more »

Hyundai Engineering's IPO withdrawal upsets Hyundai Motor Group chairman's plan

Hyundai Engineering headquarters in Seoul is seen in this file photo. Courtesy of Hyundai Engineering By Park Jae-hyuk Hyundai Engineering failed to attract institutional investors in a two-day demand forecasting ... Read more »

Busan International Film Festival reappoints Chairman Lee

By Kim Rahn Busan International Film Festival (BIFF) Chairman Lee Yong-kwan speaks in an online press conference, Oct. 30, 2020, the last day of the 25th edition. Courtesy of BIFF ... Read more »

Lee, Yoon in dead heat at 35% each: poll

Democratic Party candidate Lee Jae-myung (left) and People Power Party presidential candidate Yoon Suk-youl (Yonhap)Ruling party presidential candidate Lee Jae-myung and his main opposition rival Yoon Suk-yeol are in a ... Read more »

Japan in final consultations to recommend Sado mine as UNESCO heritage site: report

This file photo provided by Japan’s Kyodo News shows Sado mine where Koreans were forced into labor during Japan’s 1910-45 colonial rule. (Japan’s Kyodo News)Japan is in “final consultations” internally ... Read more »

Moon thanks Kazakh president for return of remains of independence fighter

An honor guard of South Korea’s military carries a portrait of Hong Beom-do, a historic independence fighter during Japan’s colonial rule of Korea, and his coffin at Seoul Air Base ... Read more »

Dollar unchanged at 77.96 rubles on Moscow Exchange

Euro slides to 86.94 rubles Read more »

MOEX index up 1.23% at trade start

The price of futures contracts of Brent crude oil for April 2022 delivery was up by 0.26% at $84.4 per barrel on London’s ICE Read more »

Ahn pledges to sign Korea-US nuclear sharing agreement

People Party leader Ahn Cheol-soo (Yonhap) People Party leader Ahn Cheol-soo promised Friday to push for the signing of a Korea-US nuclear arms sharing agreement in response to the threat ... Read more »

(LEAD) Samsung Card logs 169.1 pct rise in Q4 net on rebounding spending

(ATTN: RECASTS headline, first 2 paras; ADDS info, photo) SEOUL, Jan. 28 (Yonhap) — Samsung Card Co., a major South Korean card issuer, on Friday reported a 169.1 percent rise ... Read more »

Shareholders approve POSCO's plan to create holding firm

A POSCO building in Seoul / Yonhap Shareholders of POSCO, South Korea’s top steelmaker, approved the company’s plan to transform into a holding company by splitting it into two business ... Read more »

[Graphic News] Poll finds 9 in 10 Koreans feeling climate change firsthand

Nine out of 10 South Koreans feel climate change firsthand and are willing to accept any inconvenience caused by policies to solve the problem, a poll showed. According to the ... Read more »

Korea's daily COVID-19 cases hit new high

People queue in line for the coronavirus test at a temporary screening clinic for the coronavirus in Seoul, Jan. 27. AP-Yonhap South Korea’s daily COVID-19 cases reached yet another record ... Read more »

Members of Moon's entourage for Middle East visit test positive for COVID-19

Cheong Wa Dae in Seoul (Yonhap)A small number of members of President Moon Jae-in’s entourage for a visit to the Middle East tested positive for COVID-19 after they returned home, ... Read more »

Korea calls for swift revision of Trump-era steel tariffs

This photo, provided by South Korea’s industry ministry on Friday, shows South Korean Trade Minister Yeo Han-koo (2nd from R)) speaking with US Trade Representative (USTR) Katherine Tai (2nd from ... Read more »

Market access may make US-proposed IPEF more attractive: S. Korean trade minister

South Korean Trade Minister Yeo Han-koo speaks in a seminar hosted by the Center for Strategic and International Studies in Washington on Thursday, in this photo captured from the Washington-based ... Read more »

As pandemic wipes out gatherings, alcohol industry sets eyes on at-home drinkers

gettyimagesbank With gathering restrictions and business curfews in place throughout the pandemic, the alcoholic beverage industry, among other hospitality-related sectors, has faced setbacks from the protracted coronavirus crisis. But on ... Read more »

N. Korea confirms test-firing of long-range cruise, surface-to-surface missiles

This composite photo, released by North Korea’s official Korean Central News Agency, shows a long-range cruise missile being test-fired on Tuesday. (KCNA)North Korea on Friday confirmed this week’s two rounds ... Read more »

US equally focused on N. Korea as all other threats: Pentagon spokesman

Department of Defense Press Secretary John Kirby is seen answering a question in a press briefing at the Pentagon in Washington on Thursday in this image captured from the department’s ... Read more »

(Yonhap Feature) As pandemic wipes out gatherings, alcohol industry sets eyes on at-home drinkers

By Chang Dong-woo SEOUL, Jan. 28 (Yonhap) — With gathering restrictions and business curfews in place throughout the pandemic, the alcoholic beverage industry, among other hospitality-related sectors, has faced setbacks ... Read more »

Kang Daniel on acting debut with Disney+ original 'Rookie Cops'

Actors Kang Daniel, left, and Chae Soo-bin pose during the online press conference of the Disney+ original series “Rookie Cops,” Wednesday. Courtesy of Disney+ By Lee Gyu-lee K-pop star Kang ... Read more »

Market access may make U.S.-proposed IPEF more attractive: S. Korean trade minister

By Byun Duk-kun WASHINGTON, Jan. 27 (Yonhap) — Increased market access may make a U.S.-envisioned new economic framework in the Indo-Pacific region more attractive, South Korean Trade Minister Yeo Han-koo ... Read more »

SK Hynix 2021 net income up 102.1 pct to 9.61 tln won

SEOUL, Jan. 28 (Yonhap) — SK Hynix Inc. on Friday reported its 2021 net profit of 9.61 trillion won (US$8 billion), up 102.1 percent from a year earlier. The company ... Read more »

SK Hynix Q4 net profit up 87.5 pct to 3.31 tln won

SEOUL, Jan. 28 (Yonhap) — SK Hynix Inc. on Friday reported its fourth-quarter net income of 3.31 trillion won (US$2.8 billion), up 87.5 percent from a year earlier. Operating income ... Read more »

(URGENT) Industrial output grows 4.8 pct last year, largest gain in 11 years

(END) Read more »

12-year-old illustrator 'The Doodle Boy' lands Nike deal

The Doodle Boy posts his illustrations on Instagram where he has amassed 119,000 followers. 12-year-old illustrator Joe Whale, who goes by the name “The Doodle Boy” on social media, has ... Read more »

Sotheby's to auction Virgil Abloh's Louis Vuitton Nike Air Force 1

This is the very first drop of the Louis Vuitton and Nike “Air Force 1,” which debuted during Abloh’s spring-summer 2022 men’s collection. Sotheby’s will let Virgil Abloh’s biggest fans ... Read more »

Deputy prime minister Grant Robertson plays down Government's spending's role in inflation

Government spending is not contributing a significant amount to inflation, Deputy Prime Minister Grant Robertson says. Yesterday, Statistics New Zealand revealed inflation had hit 5.9 per cent in 2021, the ... Read more »

Alrosa expects diamond demand to grow in 2022 owing to more US weddings — Deputy CEO

About half the consumption on the global diamond market is associated with weddings and engagements, Alexey Filippovsky said Read more »

India, Central Asian states to prepare roadmap to develop trade — declaration

The leaders noted that the current level of trade and investments between India and Central Asian countries was far from realizing its true potential and stressed on the importance of making concerted efforts to boost trade and investment Read more »

Russians divided on Central Bank's idea to ban cryptocurrency, poll reveals

About 32% of respondents viewed the regulator’s initiative in a negative light, while almost same percentage supported the idea Read more »

Slovakia starts gradually increasing gas supplies from Russia — operator

The request for January 27 was 42.3 mln cubic meters of natural gas Read more »

Russian authorities to develop driverless transport technologies — PM

High-technology solutions help in particular to support transport connectivity in the country and develop transit traffic, Mikhail Mishustin noted Read more »

Tax subsidies on Kuril Islands to be granted to investors with land on islands

Earlier, the Russian government passed a bill on the regulation of the activities of residents registered on the territory of the Kuril Islands Read more »

GDP grew at a 6.9% pace to close out 2021, stronger than expected despite omicron spread

The U.S. economy grew at a much better than expected pace to end 2021 though the acceleration likely tailed off as the omicron spread put a damper on hiring and ... Read more »

Dollar, euro falling on Moscow Exchange

The US dollar lost 1.79% against the closing level of the prior session, the euro lost 2.68% at the same time Read more »

Russia's international reserves reach record-high $639.6 bln — Central Bank

The Central Bank noted that reserves increased as a result of foreign currency purchases within the fiscal rule framework, partly offset by negative revaluation Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic