Top Loan Providers Can Now Secure Funding from Banks

[Asia Economy Reporter Kim Jin-ho] In the future, excellent microfinance lenders will be able to secure funding from banks.

The Financial Services Commission announced on the 11th that banks plan to revise their uniform internal regulations prohibiting loans to only excellent microfinance lenders by next month. As a follow-up measure to the reduction of the maximum interest rate, financial authorities are promoting a plan to rationalize related regulations for excellent microfinance lenders.

A total of 13 banks will revise their internal regulations. These include NH Nonghyup, Shinhan, Woori, Hana, KB Kookmin, Suhyup, Gwangju, Jeju, Citi, Daegu, Busan, Jeonbuk, and Gyeongnam banks. However, SC First Bank, as well as Industrial Bank of Korea and Korea Development Bank, which focus on SME loans, are excluded.

Each bank will comprehensively review market conditions, the business status, and soundness of the respective lenders to decide on loan approval.

A Financial Services Commission official explained, "Considering the revision process, each bank plans to complete the internal regulation revisions by August to September," adding, "The designation of excellent microfinance lenders will be selected and announced by the end of this month."

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