Seoul City Designates 'Shinhan Bank' as Next City Treasury Bank... To Perform Duties for 4 Years Starting 2023
by Lim Chulyoung
Published 21 Apr.2022 09:04(KST)
The 1st Treasury Manages General and Special Accounts, the 2nd Treasury Manages Funds
Results of Seoul City Treasury Designation Review Committee Meeting, Highest Scoring Institutions Selected for Each Treasury
[Asia Economy Reporter Lim Cheol-young] Seoul City announced that it has designated Shinhan Bank as the primary treasury bank and the secondary treasury bank following the evaluation of the next city treasury bank, and will announce this through the city bulletin and website on the 21st.
On the 14th, Seoul City held the Seoul City Treasury Bank Designation Review Committee, composed of a total of 12 members including financial and IT experts, professors, and certified public accountants, and selected the priority designated institutions accordingly. After comprehensively reviewing the proposals and presentations submitted by financial institutions, Shinhan Bank received the highest scores among the primary and secondary treasury bank applicants and was selected as the first priority.
The Seoul City Treasury Bank Designation Review Committee consists of 12 members recommended by related organizations in the relevant fields and evaluated according to regulations across 6 categories and 19 detailed items. The 6 categories are internal and external creditworthiness and financial structure stability of the financial institution (25 points), loan and deposit interest rates for the city (20 points), convenience for citizens (18 points), treasury management capability (28 points), contribution to the local community and cooperation projects with the city (7 points), and green finance implementation performance (2 points).
Once the selected priority designated bank and Seoul City sign the treasury business handling agreement, the final city treasury bank will be decided. Seoul City plans to sign the agreement in May, focusing on the proposals received from Shinhan Bank.
Shinhan Bank will perform the tasks of collecting revenue, disbursing expenditures, and safekeeping and managing various funds of Seoul City for four years from January 1, 2023, to December 31, 2026. The primary treasury bank will be responsible for managing the general and special accounts (KRW 44.219 trillion), and the secondary treasury bank will manage the funds (KRW 3.5021 trillion), respectively.
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