Banking Sector Institutional Improvement TF to Launch Next Week... Discussion on Six Major Tasks

Financial Authorities, Banking Sector, Academia, and Legal Community Participation

[Asia Economy Reporter Yu Je-hoon] A government task force (TF) to comprehensively revise management and business practices and institutional improvements to strengthen the social responsibility of the banking sector will be fully launched starting next week.

The Financial Services Commission and the Financial Supervisory Service announced on the 17th that the first meeting of the Banking Sector Management, Business Practices, and Institutional Improvement Task Force (TF) will be held on the 23rd. This is a follow-up measure to the 13th Emergency Economic and Livelihood Stability Meeting held on the 15th.

The TF will be chaired by Kim So-young, Vice Chairman of the Financial Services Commission, and will be composed of members from the Financial Services Commission, Financial Supervisory Service, banking sector, academia, legal community, and consumer experts. Task-specific working groups will also be activated.

Additionally, the TF plans to comprehensively review and discuss six key tasks including promoting competition and structural improvement in the banking sector, compensation systems such as performance bonuses and retirement benefits, enhancing loss absorption capacity, expanding the proportion of non-interest income, improving the interest rate system such as increasing the proportion of fixed interest rates, and revitalizing social contribution.

The Financial Services Commission stated, “The TF will comprehensively review six major tasks including promoting competition in the banking sector,” and added, “Improvement plans are expected to be prepared by the end of June.”