The Financial Services Commission announces plans for a soft landing of extension/deferral measures at the end of this month
Activate dormant deposit, hidden insurance, credit card points
Due to the new coronavirus infection (Corona 19), loans for SMEs and small business owners will be extended and interest repayment will be delayed.
On the 3rd, the Financial Services Commission announced plans to promote innovation in the financial industry and policies that people felt.
The Financial Services Commission announced that it is inevitable to extend the loan maturity extension and interest repayment postponement measures that were extended until March 31st.
The decision was made after considering the situation of quarantine and real economy trends while the corona 19 incident has not ended.
The FSC also prepares measures to support soft landing for the financial sector so that the burden of repayment of borrowers is not concentrated at the same time even when the deferred measures are normalized.
The policy is to induce various long-term and installment repayments (extension of the repayment period of the deferred principal and interest, conversion of long-term loans, etc.) so that individual borrowers can choose a repayment method according to the situation even after the repayment deferral ends.
After gathering opinions from the financial sector, the Financial Services Commission announced a plan for a soft landing measure to extend the maturity of all financial sectors and postpone repayment at the end of this month.
The Financial Services Commission also recommended raising capital, such as accumulating provisions, so that financial companies can conduct sound management in the Corona 19 situation.
Considering the coronavirus situation, it has already been recommended to banknotes to be able to distribute within 20% of profits by the end of June this year.
In a briefing, Dae-young Kwon, head of the Financial Industry Bureau of the Financial Services Commission, said, “We did not specifically recommend (dividend restrictions) for second financial sectors such as mutual finance, but it is not only a matter of banks to maintain soundness. The government expects that the CEO or shareholders will judge the aspect to be introduced and decide (dividend payout ratio) at a reasonable and appropriate level.”
The Financial Services Commission is also focusing on revitalizing the ‘3 types of visiting dormant property’ (dormant deposit, hidden insurance money, credit card points).
From May this year, the way to subscribe and cancel content subscriptions such as books and videos will be changed conveniently.
The card payment system is reasonably improved so that consumers can easily cancel the payment by knowing the payment schedule in advance and paying only what they used.
The improvement of the loan system is also a task to be promoted.
This means that it supports easier transition to low-interest loans.
Strengthen management and supervision so that Internet banks can expand and supply loans to low and mid-credit users in line with the purpose of the introduction.
It is promoting the development of a financial branch application (financial loan map) that provides various financial information such as stores, automatic teller machine (ATM) locations, operating hours, and stores scheduled to be closed and alternative stores.
There is also a plan to use the post office when the bank branch is closed by expanding the scope of the post office to handle the business of financial companies.
The Financial Services Commission decided to further strengthen risk management in the second financial sector.
The implementation of the best standards for risk management of credit-specialized financial companies, the introduction of a savings bank buffer capital system, and reinforcement of regulations on large amounts of mutual loans and loans by industry (real estate and construction sector) will be promoted.
Induce local finance to reinforce the function of intermediating funds for local communities, such as improving the evaluation system of local banks, investing in education and welfare programs (within 20% of equity capital) at the Mutual Finance Central Meeting, and allowing mergers and acquisitions (M&As) between savings banks.
In particular, a merger between savings banks in non-Seoul regions that expands the business area to two is permitted if the requirements for sound management and compliance with laws are met.
Small short-term insurance will be introduced from June this year.
Handling of all insurance items except for high capital (nuclear power, automobiles, etc.) and long-term guarantees (pensions, nursing care) that are not suitable for small amounts or short-term is permitted.
During this month, the Task Force for Activating Insurance Rights Healthcare (TF) will be launched to initiate discussions for the launch of various healthcare products.
The intention is to expand the role of insurance to preemptive risk and health management, not just to guarantee risk.
The computerization of claims through electronic transmission of medical expenses proof documents will continue to be promoted in order to resolve the discomfort of claims for about 38 million lost subscribers.
There is also a plan to rationalize entry regulations, such as easing the authorization requirements for credit card business of financial companies.
Block ineligible people from entering the financial industry by introducing an occasional eligibility screening system for savings banks and reinforcing the registration requirements for specialized credit finance businesses.
The model standard of the savings bank’s loan interest rate calculation system will also be revised.
It will promote investment and fostering of new business fields such as platforms and my data through the overhaul of regulations owned by insurance companies’ subsidiaries, and allow non-financial and fintech companies to engage in insurance agency business.
/yunhap news