[단독] “Make a loan product that doesn’t even look at credit”… Lee Jae-myung requests a commercial bank

Input 2021.03.05 15:55 | Revision 2021.03.05 15:59

Up to 10 million won, 3% per year for 10 years
Interest is paid off at maturity
Also review the availability of loans for people with bad credit
Banknote “Unusual Sense…Incurs insolvent in the dark”

Gyeonggi Province Governor Lee Jae-myeong demanded that commercial banks make related loan products while taking the drive of a’basic loan’ policy following basic income and basic housing. As a result, there are many ripples both inside and outside the financial sector. It is not only unusual for local governments to request a specific policy-based financial program from commercial banks, but it is also because the bank is in control of the presidential campaign of Governor Lee Jae-myeong.

From the bank’s point of view, it should be prepared for a loan program that must be prepared for significant losses if it accepts the demands of Governor Lee and Gyeonggi Province, and if it is rejected backwards, it must be prepared to attack the influential presidential candidates and their supporters. The controversy over the infringement of authority that occurs when local governments implement financial policies, which are secretaries of the central government, is a bonus.

Since the second half of last year, Governor Lee has been driving the’basic loan’ policy. The essence of this system is to lend a certain amount at low long-term interest regardless of creditworthiness. The Governor’s proposal was that the government and local governments should bear the losses incurred by lending money to low-credit people. If it has been at the level of policy ideas so far, this time it has come to realization.

◇ Up to 10 million won, 10 years maturity, 3% per year loan execution

According to the banknote on the 5th, the Gyeonggi Credit Guarantee Foundation recently sent a’Gyeonggi-do type basic loan pilot operation (draft)’ to each commercial bank at the end of last month. Regardless of the creditworthiness, it is to consult with Gyeonggi-do on the opening of a financial product that lends 5 to 10 million won per person at an annual interest rate of 3% for 10 years.

All Gyeonggi-do citizens are eligible for support, but Gyeonggi-do is planning to conduct a pilot operation for Gyeonggi-do citizens who are 25-26 years old or married-aged (males 33-34 years old, females 29-30 years old). The loan method is divided into a method of paying off at maturity at once and a method of negative bankbook. Among them, the plan is to operate so that the principal and interest can be paid off at the same time in the case of temporary repayment at maturity. The total amount of support was set at 1 to 2 trillion won.

Gyeonggi Province plans to cover the difference in interest and unrepayable bad assets from low-interest loans to low-credit people. Instead of the government, private banks will make loans to low-credit people at low interest rates, and then the government will use a secondary preservation system that compensates for the difference between the market interest rate and the policy interest rate. To this end, the Gyeonggi Shinbo issued a guarantee and explained the plan that in case of insolvency, the loan principal will be reimbursed with the money of the Gyeonggi Shinbo.

At the same time, we asked the bank for opinions on whether it is possible to operate the product, the expected interest rate when the product is operated, the estimated amount required for secondary compensation, whether it is possible to operate a product that pays interest at maturity at the same time, and whether it is possible to extend the maturity for an additional 10 years.

◇ Banknote “Basically neglected, nonsense system…inevitable insolvency”

Banking officials who asked for anonymity responded that they were embarrassed by Gyeonggi Province’s request. A high-ranking commercial bank official said, “There have been cases in which local governments managed financial programs in partnership with the safe bank (a bank that manages local government funds), but it is unusual for all commercial banks to participate in a specific financial support program.” .

Another high-ranking commercial bank official said, “Basic loans are an unsense system. As long as banks use customers’ deposits to make loans, they must accurately determine whether to handle the risk and calculate interest rates, but ignore this basic.” Pointed out. Another official who requested anonymity also criticized that “a concept that can only emerge from a government-affiliated institution, not from an industrial perspective,” and “it is a part that the government should do, not private banks.”

Banks saw that Gyeonggi-do’s proposal was forced to create large-scale insolvent assets. In addition, they expressed doubts about whether Gyeonggi Province will make up for this loss.

An official from a commercial bank said, “No matter how much you are promised for secondary preservation, the amount of loss may be different from what you expected if you actually operate the product.” Another official also said, “It is possible to operate the product only on the condition that the Gyeonggi New Book provides a 100% guarantee, but if the guarantee rate is even a little lower, it is difficult to release the product.” In addition, the higher the guarantee rate, the higher the guarantee rate. If you look at the existing policy products, it is highly likely that the bank will bear some of this cost.”

In fact, there are factors that increase the insolvency rate of loans in various places in the pilot management plan suggested by the Gyeonggi Shinbo. A typical question is whether it is possible to lend to the holder of bad transaction information such as credit level judgment information. In other words, bank thresholds are open to those who are difficult to obtain loans from banks as well as second financial sectors. There is also a question that asks if a new loan can be repaid if interest is not paid when the maturity is extended by an additional 10 years.

A commercial bank official said, “Interest payment is an indicator that can determine whether or not the loan is insolvent.” It is difficult to know if the loan is insolvent if you pay it,” he said. This is why when the financial authorities recently requested banknotes to extend maturity and postpone interest repayment in order to support the novel coronavirus infection (Corona 19), banknotes made it difficult to postpone interest as much as interest.

The banking sector has pointed out that the process of promoting basic loans in Gyeonggi Province is also wrong. Even though the financial authorities exist, it is not right to ask the bank to develop products directly. An official from the banking sector said, “It is overwhelming to skip this and ask for a policy product from the bank even though there is a financial committee.” You can get caught up in it,” he said.