Shinhan and Gyeongnam Banks Rank First in H1 Tech Finance Performance Evaluation

[Asia Economy Reporter Kim Hyo-jin] The Financial Services Commission announced on the 3rd that Shinhan Bank and BNK Gyeongnam Bank ranked first in the large bank and small bank categories, respectively, in the first half of this year’s bank sector technology finance performance evaluation.

Technology finance refers to financing that supports business funds to companies with outstanding technological capabilities and growth potential, even if they lack credit ratings or collateral.

The financial authorities conduct quantitative and qualitative evaluations of the scale and quality composition of technology finance supply in the banking sector in collaboration with the Credit Information Service, Korea Institute of Finance, and others, and announce the results semiannually.

In this evaluation, Hana Bank and Busan Bank took second place in their respective categories.

Daegu Bank received a 'Level 4' rating in its own technology finance level assessment, enabling it to supply all future technology finance loans based solely on its own technology evaluation.

Level 4 banks include a total of eight institutions: KDB Industrial Bank, Shinhan Bank, Woori Bank, Hana Bank, IBK Industrial Bank, KB Kookmin Bank, Busan Bank, and Daegu Bank.

The financial authorities plan to overhaul the entire technology finance system by preparing a 'Technology Finance Guideline' that includes the subjects, methods, and procedures of technology evaluation.

They will also gradually promote the establishment of an integrated credit model that unifies technology evaluation and credit evaluation.

As of the end of August this year, the total outstanding balance of technology credit loans in the entire banking sector was 251.8 trillion won. Of this, 32.9% was disbursed to startup companies with relatively low credit ratings.

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