Discussion Expected on Progress of Measures to Enhance Competitiveness in the Card Industry
[Asia Economy Reporter Ki Ha-young] Eun Sung-soo, Chairman of the Financial Services Commission, will meet with credit card company CEOs for the first time since his inauguration to discuss current issues and convey the authorities' stance.
According to financial authorities and the credit finance industry on the 29th, Chairman Eun will hold a meeting in the Financial Services Commission's main conference room in the afternoon with 15 CEOs from the credit finance industry, including Kim Joo-hyun, Chairman of the Credit Finance Association. This meeting, originally scheduled for the 9th, was postponed once due to Chairman Eun's schedule at the National Assembly.
At this meeting, Chairman Eun is expected to discuss with the credit finance industry CEOs the progress of measures to enhance the competitiveness of the card industry. He is also likely to urge efforts to improve the high-cost business structure and to develop financial innovation.
The card industry sympathizes with the government's ongoing financial innovation plans and hopes that equal opportunities will be provided to credit finance companies during the activation of fintech. Additionally, some card companies may mention the easing of leverage ratio regulations. The leverage ratio regulation is a financial regulation that limits asset expansion through debt, currently restricting card company assets from exceeding six times their equity capital. Recently, the average leverage ratio of seven major card companies was 5.1 times, approaching the limit of six times. The card industry has continuously requested an increase in the leverage ratio to expand businesses such as installment financing.
Since capital company CEOs will also attend the meeting, discussions may include rationalization measures for real estate lease regulations. Currently, the Financial Services Commission is reportedly considering revising the supervisory regulations of the Specialized Credit Finance Business Act related to this, to enable the capital industry to enter the real estate lease business more easily.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
