FSS cooperates with savings banks to improve internal control
The headquarters of the Financial Supervisory Service (FSS) in Yeouido, Seoul / Courtesy of FSSBy Anna J. ParkRegulatory authorities have come up with measures to prevent financial accidents and improve internal controls at savings banks, particularly in the areas of project financing (PF) loans, private business loans and capital management. The Financial Supervisory Service (FSS) announced the measures on Sunday, explaining that it recently formed a task force with the Korea Federation of Savings Banks as well as local savings banks to analyze past financial accident patterns and inspection results to draw up the measures. Specifically in terms of prevention of PF loan accidents, the measures enjoin a separation of bank employees, according to each step of such PF loan procedures. For instance, PF loan salespeople can neither take up the task of approving such loans nor of transferring money. Sunday's announced measures also require a set of additional restrictions when it comes to the process of wiring PF loan money. The FSS also reinforced qualifications for private business loan
