Related News
7 more savings lenders closed
Source: Agencies |
September 19, 2011, Monday
|
Print Edition
Print Edition
SOUTH Korea's financial regulator yesterday ordered the temporary closure of seven more savings banks as part of its efforts to prevent financial contagion in the country's volatile savings bank sector.
The Financial Services Commission imposed a six-month suspension on seven ailing savings banks, including the major Jeil and Tomato savings banks.
The FSC said the decision was a result of its review of 85 savings banks to identify which ones are viable.
It issued similar suspension orders on nine savings banks this year, on the basis they had inadequate liquidity. The savings bank industry, which consists of 105 small lenders, is struggling with an increasing number of real estate loans not being repaid as property prices fall.
The FSC has asked the finance ministry to earmark 500 billion won (US$451 million) for a special fund to shore up the banking sector in next year's budget.
If the suspended savings banks can survive independently by means such as new share issues within 45 days, they will be allowed to resume normal business, a FSC statement added.
The savings banks account for only 2.8 percent of the financial services industry in South Korea, but the government faces criticism for its lax handling of the sector.
The Financial Services Commission imposed a six-month suspension on seven ailing savings banks, including the major Jeil and Tomato savings banks.
The FSC said the decision was a result of its review of 85 savings banks to identify which ones are viable.
It issued similar suspension orders on nine savings banks this year, on the basis they had inadequate liquidity. The savings bank industry, which consists of 105 small lenders, is struggling with an increasing number of real estate loans not being repaid as property prices fall.
The FSC has asked the finance ministry to earmark 500 billion won (US$451 million) for a special fund to shore up the banking sector in next year's budget.
If the suspended savings banks can survive independently by means such as new share issues within 45 days, they will be allowed to resume normal business, a FSC statement added.
The savings banks account for only 2.8 percent of the financial services industry in South Korea, but the government faces criticism for its lax handling of the sector.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
