“The current situation in the banking industry is’There is a lot to do, but there is a long way to go’,” said Kim Kwang-soo, chairman of the Bank Federation, at a press conference held at the Seoul Bank Center on the 9th. Recently, he expressed his views on the disciplinary action of the CEO of the financial sector and the competition of big tech, which are issues in the banking sector.
Chairman Kim said on the day, “The bank is in a situation where new core competencies, such as strengthening platform competitiveness in accordance with the advent of the non-face-to-face era, while playing its natural role of supporting the real economy to overcome the Corona 19 (new coronavirus infectious disease) crisis.” “It is necessary to build a sustainable business environment while shifting to an eco-friendly paradigm in step with the spread of ESG management around the world,” he said.
The meeting was set up with the intent of communicating on issues in the banking industry on the 100th day of the inauguration of Bank Federation Chairman Kim Kwang-soo.
Chairman Kim raised concerns and raised concerns about the financial supervisory authority’s move to discipline the CEO (Chief Executive Officer) of a financial company for taking responsibility for the private equity crisis, and raised a problem with Big Tech, which has emerged as the most powerful competitor in the existing financial sector. Companies) emphasized the need for stricter sales discipline.
Chairman Kim said, “Recently, the banking sector is very concerned that the authorities are pursuing the disciplinary action of the bank chief for lack of internal control,” he said.
“Unreasonable discipline makes it difficult for the financial sector to predict and raises uncertainty, leading to a high risk of constricting business activities.” In particular, disciplining the CEO as a supervisor means that the head of the bank cannot practically manage and supervise the actions of all executives and employees. Considering the reality, there are many negative opinions that it is actually asking for’responsibility for results’.”
Chairman Kim argues that’invasive administrative dispositions’ such as disciplinary action should be faithfully applied to the text so that financial companies can have predictability.
At the same time, it emphasized the self-reliance efforts of banks to protect consumers. He said, “The Financial Consumer Protection Act is scheduled to come into effect on the 24th, and the Federation has established a joint work process plan by operating a joint task force for the banking sector, and is also preparing the internal control standards and consumer protection standards to be implemented from September 25th. “In the future, banknotes will eradicate incomplete sales and take the lead in relieving consumer rights and interests,” he said.
When asked about the’reverse discrimination problem with big tech’, Chairman Kim said, “When considering the policy purpose of fostering the fintech (financial technology) industry, it is necessary to distinguish between big tech and fintech when preparing regulations.” For the big tech platform, there is a need to come up with more thorough business rules.”
He added, “There will be a need to review Big Tech’s credit risk monitoring and overall regulatory system maintenance.”
Chairman Kim said earlier this year that the Financial Services Commission recommended dividends to financial holding companies and banks as’within 20% of net profit’ by the end of June this year. Under the circumstances, in order for the bank to act as a safety plate for the economy, it is necessary to have sufficient loss absorption capacity,” he expressed sympathy.
Two key tasks to be pursued by the Federation of Banks this year were preparing without disruption to the implementation of the Financial Consumer Protection Act (Money Soo Act) and supporting the real economy suffering from Corona 19 without a hitch.
Chairman Kim said, “In the long term, above all else, I will try to increase customer trust in the banking industry.” I will make sure that the consumer-oriented culture is settled.”
He also emphasized that “there will be a full-scale platform era in the future, and through these efforts, we will do our best to make the bank a key platform in the future.”
Recently, the Federation of Banks has changed the current system of 8 departments and 2 offices to 9 departments and 3 offices. The Department of Sustainability Management, which manages ESG response and social contribution activities, and the Legal Support Department, which manages legal and tax issues, were newly established. There is also a loan recruitment management office dedicated to the registration and inspection of bank loan recruiters.
Chairman Kim said, “Through this reorganization and personnel management, we plan to respond quickly and flexibly to changes in the financial environment, and continue to support the development of the banking industry by strengthening response to laws and conducting systematic social contribution activities.”
Along with this, the employee bank has repeatedly emphasized platform competitiveness. Chairman Kim said, “As the corona is prolonged and non-face-to-face is progressing faster, banks need to make efforts to transform into a platform company in order to gain long-term competitiveness. The experience needs to be improved.
Regarding the point that the financial industry changes and reverse discrimination occurs as Big Tech’s advance into the financial industry accelerates, he said, “I think it is okay to emphasize this part of the problem.”
In addition, “Considering the policy purpose of fostering the fintech industry, it seems necessary to separate big tech from fintech when preparing regulations, and to prepare thorough business rules for big tech that has a large influence.” Tech can never be an exception,” he added.