New stock-backed loans suspended for 6 months… Resolution by the financial authorities
The ES Savings Bank (formerly Live Savings Bank), who committed illegal acts in the process of handling stock-linked bonds (CB/BW) collateral loans, was punished by financial authorities for a penalty of KRW 9.1 billion and a partial suspension of business.
At a regular meeting on the 27th, the Financial Services Commission and the Financial Supervisory Service resolved six months of suspension of new securities mortgage loans to ES savings banks, a fine of 9.110 billion won, and a penalty of 74 million won.
It also decided to take measures such as recommending dismissal for the former CEO and suspending three months for the former auditor and former head of the headquarters.
It has notified the judicial authorities about the unreasonable influence of the former majority shareholder.
Financial authorities explained that a number of illegal activities were confirmed in the process of intensive handling of stock-linked bonds secured loans after the former Live Savings Bank acquired the former Sambo Savings Bank in August 2019, as a result of last year’s FSS inspection.
It was confirmed that the loan was handled in excess of the individual borrower’s credit limit, such as exceeding 210.3% of equity capital, and provided unfair profits of 66 million won to the large shareholder by letting the large shareholder affiliate lend the loan requested by the borrower. .
Immediately after receiving the FSS inspection notice, employees submitted false data, such as replacing their PC hardware, to interfere with the inspection.
The financial authorities said, “It is to raise awareness of behaviors that hinder sound market order.” After the acquisition of a savings bank, illegal activities are systematically and repetitively occurring under the leadership of the major shareholders and management, damaging sound management. “We considered the seriousness of unscrupulous business practices such as,” he said.
The partial suspension of this business is limited to new business of securities collateralized loans during the loan business.
Other loan services such as real estate mortgage loans and microcredit loans and receiving services such as deposits and savings are operated normally.
ES Savings Bank’s international settlement bank (BIS) standard total capital ratio is 15.7% as of the end of September last year, which is relatively stable.
The financial authorities said, “We will make sure that loans secured by securities of savings banks that can be used as a source of funding for unfair trade in the capital market are not treated excessively.” “Illegal of large shareholders who acquired savings banks as an expedient way to evade approval for stock acquisition I will respond strictly to the actions,” he stressed.
/yunhap news
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