Jeong Eun-bo, Financial Supervisory Service Chief, "Review Bank Loan-Deposit Interest Rate Spread and Take Corrective Measures if Necessary" (Comprehensive)

Meeting Held Between Financial Supervisory Service Chief and Korea Federation of Credit Cooperatives Chairman

Participants taking a commemorative photo at the meeting between the Financial Supervisory Service Governor and the Korea Federation of Community Credit Cooperatives President held on the 9th in Myeongdong, Jung-gu, Seoul. (From left) Choi Chang-ho, President of the Korea Forest Service Central Association; Lim Jun-taek, President of the National Federation of Fisheries Cooperatives; Jung Eun-bo, Governor of the Financial Supervisory Service; Lee Sung-hee, President of the National Agricultural Cooperative Federation; Kim Yoon-sik, President of the National Credit Union Federation.

[Asia Economy Reporter Kim Jin-ho] Jeong Eun-bo, Governor of the Financial Supervisory Service (FSS), stated on the 9th regarding the controversy over the widening loan-deposit interest rate spread, "We will review the calculation system centered on banks and take corrective measures if necessary."

Governor Jeong made these remarks to reporters after a meeting with the heads of the Financial Supervisory Service and the National Federation of Mutual Savings Banks held at the Bankers' Hall in Myeong-dong, Jung-gu, Seoul. He also said, "We are also looking into the interest rate calculation system of the secondary financial sector. Once it becomes somewhat concrete, we will provide an explanation."

Regarding criticisms that the financial authorities' loan regulations have blocked loan channels for ordinary citizens, he said, "It is regrettable but unavoidable." Due to the financial authorities' stringent total loan volume regulations, starting from the second half of this year, there has been a surge in cases where banks and the secondary financial sector have closed their loan doors. Recently, even mutual financial institutions mainly used by ordinary citizens, such as Saemaeul Geumgo and Shinhan Credit Cooperatives, have completely stopped handling household loans or drastically reduced them.

In response, Governor Jeong emphasized, "There may naturally be some changes in market supply during the total volume management process, but we will respond flexibly to ensure that financial accessibility for ordinary citizens is secured as much as possible."

When asked about the direction of the comprehensive inspection of Woori Bank starting on the 16th, he replied, "I believe it is not desirable to conduct discretionary inspections or sanctions that excessively deviate from laws and principles. More efforts are needed for proactive inspections and guidance for risk management."

He refrained from commenting on the need to reform the financial supervisory system, which is being raised mainly in the National Assembly. He explained, "I would like to refrain from making public statements. When discussions are officially held, we will play our role accordingly."

Regarding next year's household debt total volume management target, he said, "We have committed to managing it at an overall level of 4-5%. We are currently negotiating total volume management by sector, and some differences may inevitably occur."

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