Lee Bok-hyun, Financial Supervisory Service Chief, Urges Swift Normalization of Bank Business Hours

"Excessive Loan Interest Rate Hikes Must Be Prevented"

[Image source=Yonhap News]

[Asia Economy Reporter Sim Nayoung] On the 10th, at the Financial Supervisory Service (FSS) executive meeting, Lee Bok-hyun, Governor of the FSS, requested, "Although economic activities of the public are normalizing with the lifting of COVID-19 social distancing measures, the continued reduction in bank operating hours is causing increasing inconvenience to the public. Please make efforts to ensure that bank operating hours are normalized as soon as possible through smooth negotiations between bank labor and management."

The Governor also urged, "During the period of rising interest rates, banks should continuously inspect and monitor the actual conditions of interest rate calculation and operation to prevent excessive increases in loan interest rates compared to market interest rates and borrower creditworthiness, and improve any deficiencies, thereby continuing efforts to enhance the rationality and transparency of the interest rate calculation system."

He added, "Please continue efforts to improve the performance-based compensation system together with the banking sector, so that the system does not overly focus on short-term performance, which could lead to neglect of internal controls and risk management in the mid- to long-term, or cause financial accidents."

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