Banks bemoan gov't pressure to support vulnerable
Financial Services Commission Chairman Kim Joo-hyun, center, looks at his watch during a meeting with the nation's five financial holding firms, at the Government Complex Seoul, Thursday. From left are KB Financial Group Chairman Yoon Jong-kyoo, Kim and Shinhan Financial Group Chairman Cho Yong-byoung. YonhapBy Lee Min-hyungCommercial banks are crying foul over the government's demand that they reduce their interest rates for loans and offer debt relief for financially vulnerable customers, as the brunt of these policies will be borne by the lenders, financial industry sources said, Thursday. With the latest decision by the Financial Services Commission (FSC), the government will set up what it calls a “new beginning fund” worth 30 trillion won ($22.9 billion) and use the money to help reduce loan principals for borrowers with low credit ratings.The authority plans to urge banks to participate in the drive, calling on them to take similar steps on behalf of those who cannot benefit from the fund directly.The banks remained perplexed over the decision by the government, se
Jul 21, 2022By Lee Min-hyung