Input 2021.03.22 06:00
According to the financial sector on the 22nd, the National Assembly’s Political Affairs Committee decided on the amendment to the’Act on Financial Life Support for the Common People’ (Corporate Finance Act) in the first subcommittee of the Legislation Examination on the 17th by agreement between the opposition parties. This bill aims to require banks to pay about 200 billion won annually from all financial companies, including the annual contribution of 10 billion won by banks, to the People’s Financial Promotion Agency. The revised bill is presented to the plenary session after the Political Affairs Committee plenary meeting and the Legislative Judicial Committee on the 24th.
An official from a bank said, “It seems that we will have to pay 10 to 20 billion won per bank as a contribution every year. We are in a position to manage the risk of novel coronavirus infection (Corona 19), and the government’s loan maturity extension and interest repayment In the situation where they are already taking risks, such as cooperating with the postponement policy, this is an absolute burden,” he said.
Some pointed out that there is a lack of justification. Another bank official said, “The bank is not a financial sector that focuses on low-income financing, but we ask us to pay the resources for making low-income financial products.” There is no reality.”
Another bank official criticized, “It is a treacherous treatment to put money where the government wants, while limiting dividends in the financial sector because it is to store money in preparation for the potential risk that may burst after the coronavirus.”
In the banking sector, the low-income finance law is actually interpreted as a signal to the financial sector’s profit-sharing system. At the same time, they are concerned that the bank may become another victim of the profit-sharing system, which is being promoted separately from the common people’s finance law. The profit-sharing system is intended to allow industries that were relatively booming through the corona spread to share profits with the sectors and classes affected by the coronavirus outbreak. Financial companies, including banks, are also being discussed as beneficiaries of the coronavirus.
Lee Governor recently delivered an official letter to each bank through the Gyeonggi Credit Guarantee Foundation asking whether it is possible to open a product that lends up to 10 million won for 10 years at an annual interest rate of 3% regardless of credit level.
In the banking sector, I thought it was an idea that was not realistic because it was a structure that had no choice but to increase massive insolvency. However, it was the request of the influential presidential candidate, and the banks were incapable of doing this or that as they asked for the reason for it to be filled out in every item if the decision was impossible.
There are also opinions that fundamentally, negative views on banks should change. Bank Federation Chairman Kim Kwang-soo said at a press conference on the 9th, “There was a negative view on bank interest income, but there was a need to change the perception of banks that mainly function to create credit.” He said, “Only when you make a reasonable profit, you can play a smooth role of supplying funds to the real economy.”