Yoon Seok-heon, Financial Supervisory Service Chief, Reaffirms "No Inspections or Sanctions for COVID-19 Financial Support"

Yoon Seok-heon, Governor of the Financial Supervisory Service, visited the 'COVID-19 Damage Support Dedicated Counter' and the 'KB SOHO Consulting Sadang Center' at KB Kookmin Bank Sadang Branch on the 26th of last month to check the status of financial support for small and medium-sized enterprises and small business owners affected by COVID-19.

[Asia Economy Reporter Kim Hyo-jin] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), stated on the 2nd, "It must be clearly communicated that there will be no inspections or sanctions on loans to companies affected by the novel coronavirus infection (COVID-19)."

Governor Yoon made this request while presiding over the 'Crisis Response General Meeting' attended by executives and heads of major departments, the FSS announced.

The FSS has taken the position that it will not conduct inspections or impose sanctions holding banks responsible for future defaults in order to actively support banks and other financial institutions providing assistance to companies or small business owners affected by COVID-19.

Governor Yoon also instructed to review temporary relaxation measures on financial regulations such as the Liquidity Coverage Ratio (LCR) and loan-to-deposit ratio, based on industry opinions and responses from overseas supervisory authorities, so that the fundamental principles are not compromised, ensuring that the original function of finance?supplying funds to the real economy?can operate properly amid COVID-19.

He further mentioned that the European Central Bank (ECB) and the Prudential Regulation Authority (PRA) of the UK have recommended banks to suspend dividend payments, share buybacks, and performance bonuses in response to the COVID-19 shock, and that global banks are participating in these measures.

Governor Yoon added, "Domestic financial companies also need to refer to overseas cases to secure sufficient loss-absorbing capacity and strive to maintain their ability to provide smooth funding to the real economy."

This content was produced with the assistance of AI translation services.