[Asia Economy Reporter Naju-seok] Yoon Seok-yeol, the presidential candidate of the People Power Party, promised on the 19th to introduce a financial consumer protection system that requires banks to disclose the gap between deposit interest rates and loan interest rates. This is to ensure that commercial banks do not exploit information asymmetry to increase the burden on the public through financial administration.
Through his "Heart-throbbing Pledge" on the same day, Candidate Yoon stated, "We will require commercial banks to periodically disclose the difference between deposit and loan interest rates. In situations where the base interest rate rises or falls and the interest rate spread increases sharply, financial authorities will closely examine whether the risk was appropriately set in the calculation of the additional interest rate and whether there are elements of collusion. This will promote transparent and fair competition among financial institutions and protect financial consumers."
According to Yoon's campaign, "Recently, due to financial policies regulating total loan volume, the additional interest rate has risen sharply compared to the base interest rate increase, causing a rapid increase in the interest burden on the public." On the other hand, in the first half of last year, the six major commercial banks (KB, Shinhan, Woori, Hana, Nonghyup, IBK) recorded operating profits exceeding 9 trillion won.
Candidate Yoon's plan to disclose the interest rate spread aims to prevent financial institutions from exploiting information asymmetry to increase the public's burden and to shift financial administration from being bank-centered to consumer-centered, thereby establishing the appropriateness of interest rate calculations.
Yoon said, "We will continue to prepare the minimum necessary measures so that all citizens can enjoy fair and reasonable financial services."
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