Banking Federation Chairman Kim Kwang-soo answers reporters’ questions at a press conference held at the Seoul Bank Center on the afternoon of the 9th. Provided by the Federation of Banks
Bank Federation Chairman Kim Kwang-soo raised a question about the policy of disciplinary action for chief executive officers in the financial sector (CEO) being promoted by the financial authorities. They say that disciplinary action without clear standards increases uncertainty and shrinks business activities.
At an online press conference held on the 9th, on the 100th day of his inauguration, Chairman Kim said, “Recently, there is a great deal of concern about the banking sector that the financial authorities are pursuing the disciplinary action of the bank chief for lack of internal control. “Because there is a distance from the’principle of’.
Chairman Kim’s remarks can be interpreted as putting a step in the one-sided movement of the authorities who shake hands with the CEO of the financial sector whenever a problem arises. It is also that Chairman Kim, a former member of the Financial Services Commission, openly rebelled against the policy of the financial authorities, who was his father. Chairman Kim held various positions with Finance Commissioner Eun Seong-soo and director of financial services at the Financial Services Commission as a motive for the administrative examination.
The Financial Supervisory Service recently informed Shinhan Finance Chairman Cho Yong-byeong of a’cautionary warning’ and a severe disciplinary’cause warning’ to Shinhan Bank President Jin Ok-dong in order to hold responsibility for poor sales of lime funds. The financial sector is protesting, saying, “There is no basis for asking the CEO to be responsible for lack of management.”
Chairman Kim said, “There are many cases of disciplining the CEO as a supervisor, and in that case, the reality is insufficient because the head of the bank has to manage and supervise all employee activities.” Relevant regulations must be clear,” he emphasized again.
Banking Federation Chairman Kim Kwang-soo gives a greeting at a joint voluntary resolution and seminar in the financial sector to strengthen consumer protection held last month at the Bank Center in Jung-gu, Seoul. yunhap news
On the other hand, Chairman Kim showed a positive attitude toward the recommendation of the financial authorities to limit the bank’s dividend rate to within 20% of net profit by the end of June at the conference. As most banks have already accepted the recommendations of the authorities, it seems that they have decided that there is no need to unnecessarily emphasize their opposition.
Chairman Kim said, “I think banks need to have sufficient capacity to absorb losses in order to serve as a safety plate for the Korean economy in a situation where Corona 19 is prolonged,” he said. “Strict capital management is recommended not only in Korea but also in most countries. He said.
Kwak Joo-hyun reporter [email protected]
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