Gyeongnam Province Budget Now Managed by 'Nonghyup and Gyeongnam Bank'

Operation of Provincial Treasury for 3 Years Starting January 1, 2023

Gyeongnam Provincial Government. / Photo by Se-ryeong Lee ryeong@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] NH Nonghyup Bank and Gyeongnam Bank have been selected as the treasury banks to manage Gyeongsangnam-do's budget from January 2023 to December 31, 2025.

Gyeongnam Province announced on the 10th that, as a result of holding the Treasury Designation Deliberation Committee on the 1st, the two banks were designated as the first and second treasury banks to operate the provincial budget for the next three years.

The province stated that since the contract period of the current treasury, which has been performing the treasury duties, expires at the end of this year, it began announcing the application for treasury designation in September.

In October, proposals from financial institutions were received, and in November, the Treasury Designation Deliberation Committee was held to proceed with the procedure for designating the next provincial treasury banks.

The procedure was conducted through an open competitive method, and based on the proposals from financial institutions, the Treasury Designation Deliberation Committee evaluated and selected the banks according to the Ministry of the Interior and Safety's regulations on "Standards for Designating Local Government Treasuries" and the "Ordinance on the Designation and Operation of Gyeongsangnam-do Treasuries."

According to the province, the evaluation criteria for treasury designation included six items: ▲ internal and external creditworthiness and financial structure stability of the financial institution ▲ loan and deposit interest rates for the province ▲ convenience for local residents ▲ treasury management capability ▲ contribution to the local community and cooperative projects with the province ▲ regional reinvestment performance and loan performance/plans for fostering small and medium-sized enterprises within the province, among other items.

The next first treasury bank will be responsible for five funds: general accounting, rural and fishing village promotion, investment attraction promotion, disaster relief, inter-Korean exchange cooperation, and small and medium enterprise investment.

The second treasury bank will handle six special accounts and six funds including regional development, integrated fiscal stabilization, food promotion, disaster management, social economy, and gender equality.

The two selected financial institutions are scheduled to sign treasury contracts with Gyeongsangnam-do by December 1 and will perform treasury duties for the province for three years starting from January 1 of next year.

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