The Korea Times close
National
  • Politics
  • Diplomacy
  • Defense
  • Labor & Environment
  • Law & Crime
  • Health & Welfare
  • Embassy
  • Seoul & Provinces
  • Education
  • Foreign Communities
  • Obituaries
  • Multicultural Youth Award
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Finance
  • Policies
  • Economy
  • Markets
  • Banks
  • Non-banks
  • Economic Essay Contest
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Lifestyle
  • Arts
  • Books
  • Travel & Cuisine
  • Trend
  • Fashion
  • Around Town
  • Fortune Telling
Entertainment
  • K-pop
  • K-dramas & Shows
  • Movies
  • Music
  • Performances
  • Asia Model Festival
Sports
  • Football
  • Golf
  • Baseball
  • Other Sports
World
  • Asia Pacific
  • Americas
  • Europe & Africa
  • SCMP
Video
  • On the Spot
  • Feature
  • News
Photos
  • Photo News
  • Darkroom
Community
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
National
  • Politics
  • Diplomacy
  • Defense
  • Labor & Environment
  • Law & Crime
  • Health & Welfare
  • Embassy
  • Seoul & Provinces
  • Education
  • Foreign Communities
  • Obituaries
  • Multicultural Youth Award
Tue, January 19, 2021 | 13:58
Business
Another bank run at Jeil Savings Bank
Posted : 2011-05-04 22:05
Updated : 2011-05-04 22:05
Mail
Print Preview
Font Size Up
Font Size Down
By Kang Seung-woo

Amid growing concerns over the shutdown of savings bank, account holders rushed to branches of Jeil Savings Bank, Wednesday, to withdraw their deposits.

The secondary lender is being investigated by the Financial Supervisory Service (FSS) after its executives and employees were found to have given a 60 billion won illegal loan to a real estate developer.

The bank’s branch located in central Seoul saw a long line of about 300 customers from the beginning of business hours with the number growing to approximately 3,000 at around 2 p.m.

“Due to the business suspensions of savings banks, I am worried that Jeil Savings Bank may be ordered to halt its transactions. I am not sure if I will be able to withdraw my deposit of 50 million won today,” said one client.

Another branch in Yeouido also saw more than 100 depositors, who wanted to withdraw their money, at 1 p.m.

The bank run came after the Financial Services Commission (FSC), the decision-making arm of the FSS, suspended business operations at eight savings banks, including Busan Savings Bank, the largest secondary lender in the nation, earlier this year due to their low capital adequacy ratio caused by mass withdrawals.

The alarmed FSS started attempting to quell heightening fears about the bank run resulting in massive cash withdrawals, saying its ongoing inspection is to check personnel irregularities.

“The check-up is aimed at confirming corruption by the bank’s executives and employees, which prosecutors announced, not examining its fiscal soundness,” said Joo Jae-seong, the deputy governor at the FSS.

According to the financial watchdog, the bank’s Bank for International Settlements (BIS) ratio, a measurement of financial soundness, was 8.28 percent and bad loans accounted for 6.1 percent as of the end of last year, both of which are solid in the industry. In addition, its project financing (PF) loans stand at 520 billion won, representing 16 percent of its overall lending.

The FSS said that Jeil currently has about 300 billion won in cash and securities, so it is not expected to face a liquidity shortage over the short term.

The prosecution arrested an executive director of the bank Tuesday for making the illegal loan to a real estate development company after taking bribe.
Emailksw@koreatimes.co.kr Article ListMore articles by this reporter









 
WooriBank
 
  • Man jumps to death inside shopping mall in Seoul
  • Foreign residents left out of digital-oriented banking service
  • Lee's jail sentence casts cloud on Samsung's business
  • Samsung heir Lee Jae-yong imprisoned again
  • Heavy snow advisory issued for Seoul
  • Moon calls on Biden to move forward from Singapore agreement with North Korea
  • LG Energy Solution IPO could test Citigroup's friendship with SK
  • Shake Shack introduces Korean-inspired chicken sandwich in US
  • Will Prestige BioPharma's upcoming IPO continue frenzy in bio market?
  • New virus cases at almost 2-month low on fewer tests, infections slowdown
  • Music publishing sector booming with high-profile sales Music publishing sector booming with high-profile sales
  • Boy group Cravity features in Airbnb's 'Inside K-pop' program Boy group Cravity features in Airbnb's 'Inside K-pop' program
  • Selena Gomez: Big Tech 'cashing in from evil' Selena Gomez: Big Tech 'cashing in from evil'
  • 'The Uncanny Counter' writer leaves show despite soaring ratings 'The Uncanny Counter' writer leaves show despite soaring ratings
  • Netflix to roll out more original series based on Korean webtoons in 2021 Netflix to roll out more original series based on Korean webtoons in 2021
DARKROOM
  • Biden-Harris inauguration is taking shape [PHOTOS]

    Biden-Harris inauguration is taking shape [PHOTOS]

  • Second Trump impeachment

    Second Trump impeachment

  • Pro-Trump rioters breach the US Capitol

    Pro-Trump rioters breach the US Capitol

  • Our children deserve better (Part 2)

    Our children deserve better (Part 2)

  • Migrants hard hit by COVID-19: UN migration agency

    Migrants hard hit by COVID-19: UN migration agency

WooriBank
  • About Korea Times
  • CEO Message
  • Times History
  • Content Sales
  • Media Kit
  • Contact Us
  • Location
  • Privacy Statement
  • Terms of Service
  • Mobile Service
  • RSS Service
  • Ombudsman
  • hankookilbo
  • Dongwha Group
  • Code of Ethics
Copyright