Monday, November 29

“Improvement of standards for sound supervision of regional banks… Differentiation from commercial banks in management status evaluation”

Jeong Eun-bo, head of the Financial Supervisory Service. yunhap news

Jeong Eun-bo, head of the Financial Supervisory Service, said, “We will rationally improve the standards for prudential supervision of local banks.”

President Jeong said at a meeting with regional bank heads held at the Kensington Hotel in Yeouido, Seoul on the 11th, saying, “The Financial Supervisory Service will support regional banks so that they can faithfully perform the fund intermediary function necessary to revitalize the local economy while maintaining soundness.”

President Jung said, “We will differentiate the management status evaluation rating standard from that of commercial banks so that the evaluation rating is relatively low, so that local governments do not suffer disadvantages in the selection of safes or limit the sound performance of credit business.”

He said, “In the regional reinvestment evaluation system that has been in effect since last year, we will increase the effectiveness of the system so that banks with a large contribution to regional financial supply can receive a better evaluation. We will support regional banks so that they can operate city and city safe deposit boxes under fairer conditions.”

It also plans to support the strengthening of digital competitiveness of regional banks. President Jung said, “Recently, local banks are making great efforts for digital transformation, but there are many evaluations that their digital capabilities are still insufficient due to lack of IT manpower and investment capacity. I will try,” he said.

President Jung said that he will strengthen proactive supervision to identify and manage risk factors in advance for regional banks, and take a preemptive response through expansion of regular monitoring functions and timely inspection of important risk factors. He said, “In the case of regional banks, there are relatively many elderly customers, so I think that there is a high risk of consumer damage due to financial fraud or incomplete sales. We plan to continue the inspection to ensure that the six sales principles of the Consumer Protection Act are implemented without any setbacks.” “We will strengthen financial education for the vulnerable, such as the elderly, and increase digital accessibility,” he said.

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