Jeonbuk Bank Recruits 'Experts' to Secure Asset Soundness

[Asia Economy Honam Reporting Headquarters Reporter Lee Young-tae] Jeonbuk Bank is recruiting experts to restore asset soundness.

According to the financial sector on the 3rd, as of the end of March, the average loan loss provision ratio of regional banks including Jeonbuk Bank was 90.4%, which dropped by 7.1% compared to the end of last year, indicating that asset soundness is not healthy.

Although a loan loss provision ratio of over 100% is required to secure asset soundness, the loan loss provision ratio of regional banks such as Jeonbuk Bank is around 118.7%.

Asset soundness is facing issues in profitability, such as a decline in the net interest margin (NIM), a core profitability indicator of banks, making it urgent for regional banks to find a breakthrough.

JB Financial Group has newly recruited Professor Jeong Jae-jik of Sogang University’s Department of Economics and Senior Research Fellow Kim Woo-jin of the Korea Institute of Finance as outside directors this year to seek a breakthrough amid a difficult management environment.

Meanwhile, Jeonbuk Bank newly appointed Ryu Han-ho, advisor at Samsung Economic Research Institute, and Lee Jong-geon, lawyer at the law firm Ihou, as outside directors.

A Jeonbuk Bank official said, "In the past, retired senior government officials were invited as advisors or consultants to block external influences, but recently, experts from academia, business, and finance have been recruited as outside directors," adding, "We are exploring various measures to restore asset soundness amid a challenging management environment."

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