Yoon Seok-heon, Financial Supervisory Service Chief: "Bank Branch Closures Should Not Expand Due to COVID-19"

[Asia Economy Reporter Jo Gang-wook] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), expressed concern on the 21st about banks' moves to expand branch closures. He particularly pointed out that reducing the number of branches citing the COVID-19 pandemic is not desirable.

The FSS stated that Governor Yoon made these remarks at an executive meeting held that day, urging banks to make joint efforts to ensure that branch closures do not cause inconvenience to financial consumers, especially digitally vulnerable groups such as the elderly, in accessing financial services.

The number of domestic bank branches has decreased from 7,681 in 2010 to 6,652 as of March this year.

Governor Yoon specifically noted that due to the recent impact of COVID-19 and cost-cutting efforts amid declining net interest margins, the acceleration of branch closures is likely.

He said, "The reduction of banks' branch networks is inevitably a trend due to the spread of non-face-to-face transactions such as internet and mobile banking," but emphasized, "However, rapidly reducing the number of branches in a short period citing COVID-19 is not desirable."

Among the four major commercial banks, a total of 126 branches were closed in the first half of this year (as of July 16). This number far exceeds the 88 branches closed last year.

Governor Yoon stressed, "Above all, it is important for banks themselves to take a more responsible attitude in reducing branches within the scope that does not cause inconvenience to customers in using financial services." He also urged the relevant departments to "make thorough supervision from the perspective of financial consumer protection regarding branch closures."

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