Financial Supervisory Service, this year’s business plan… Total loan amount management considering borrower debt repayment ability
(Seoul = Yonhap News) Reporter Nam Kwon Kim = A plan to introduce a system of responsibility for executives of financial companies is being promoted for businesses that frequently suffer damage from financial consumers.
On the 16th, the Financial Supervisory Service announced a business plan for 2021 containing these details.
The Financial Supervisory Service decided to focus on strengthening the responsibility of financial companies’ management to prevent consumer damage.
First of all, for tasks with frequent consumer damage, a plan to clarify the scope of responsibility of the executive in charge (name and position) should be reviewed.
This is a measure to induce the establishment of a responsible management system for financial companies as large-scale consumer damages such as the recent suspension of private equity repurchases have occurred.
An official from the Financial Supervisory Service said, “In the case of the UK, who is in charge of 27 sectors such as personal investment product sales, corporate customer product development, payment and settlement, etc. are determined and submitted to the financial authorities.” Plan.”
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The Financial Supervisory Service is also planning to review ways to improve the internal control of financial holding companies in consumer protection business.
Establish a financial product information acquisition and analysis system that comprehensively monitors financial product manufacturing, sales, and post management.
Incomplete sales of high-risk products such as private equity funds are subject to intensive inspection and inspection.
Reinforce the inspection of regulatory avoidance behaviors such as avoidance of public offering regulations related to the issuance of derivative-linked securities (DLS) and bypass payment of insurance solicitation fees.
There was also a plan to increase the effectiveness of complaint handling and dispute settlement.
When certain requirements for dispute mediation, such as affecting a large number of consumers, are satisfied, the Dispute Mediation Committee shall establish a standard to refer the agenda.
The Dispute Mediation Committee requires at least one member from the consumer side and the financial company to attend, and guarantees the right to attend the parties to the dispute and state their opinions without permission.
While the novel coronavirus infection (Corona 19) situation has not ended, the financial support program is also a key task.
When financial support is normalized, a step-by-step soft landing plan is devised so that the’cliff effect’ does not occur.
In preparation for the increase in corporate insolvency, preemptive corporate restructuring by creditor banks was also selected as a task to be pursued.
In preparation for the prolonged COVID-19 outbreak, it was decided to increase the ability to absorb losses by inducing financial companies to strengthen their provisions.
To reinforce risk management of financial holding companies, consolidated supervision with affiliated financial companies (consolidated liquidity/leverage ratio introduced) will be strengthened.
Stable management of household debt is also a task to be pursued.
An official from the Financial Supervisory Service said, “We will set and manage a target for the growth rate of household loans for financial companies, and in the mid to long term, we will seek a plan to manage the total amount considering the debt repayment ability of all borrowers.”
The promotion of equity investment and loans in venture companies through collaboration within the financial group, non-face-to-face insurance recruitment using video calls and chatbots, strengthening inspection of illegal short selling by market makers, and revitalization of loans to mid-interest and low-mid-interest credits by specialized Internet banks were also cited as initiatives. .
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2021/02/16 12:00 sent