Banks brace for ‘co-prosperity’ burden under new administration
Commercial banks are preparing for the challenge of allocating substantial funds to support financially unstable customers in the name of co-prosperity under the new government, industry officials said Thursday. The lenders have been under pressure for years, both from the government and politicians, to share their profits with society. Such pressure is linked to negative public sentiment that banks’ profits — much of which comes from interest income — are seen as easy money, in contrast to the hard-earned incomes of financially distressed households, small business owners and other groups. A new president will begin his term immediately after the snap presidential election, Tuesday. Whichever candidate wins the presidency, banks will need to make sustained efforts toward co-prosperity, as all major contenders have pledged to ease the burden on indebted customers. The candidates, however, did not specify how they would fund the massive cash required to lower lending rates, offer special, low-interest loans and even write off debts, among a broader range of supportive measures. Bank o
