Cho Yong-byeong, Chairman of the Korea Federation of Banks, stated on the 1st, "We need to devise a win-win plan that resonates not from the banks' perspective but from the people's standpoint," adding, "We must establish an advanced internal control system that meets the heightened expectations of the public."
In his inaugural speech that day, Chairman Cho said, "If we proceed unwaveringly with the resolve of 무신불립 (無信不立), meaning 'without trust, one cannot stand,' we will regain the trust of the people and usher in a new era of innovation."
He first diagnosed, "Our economy faces serious challenges such as global supply chain disruptions, concerns over China's economic slowdown, and household debt issues, with the triple high (3-high) phenomenon intensifying the difficulties for the public. While the banking sector has long emphasized the importance of publicness and fulfilling social responsibilities, given today's challenging economic conditions and external evaluations, it is necessary to reflect on whether sufficient efforts have been made to meet the public's expectations."
He continued, "Banks cannot exist without the trust of the people; however, recent poor internal controls have led to a series of financial accidents, causing great disappointment. The National Assembly, representing the people, is currently preparing amendments to the Financial Company Governance Act to strengthen internal controls."
Chairman Cho also pointed out, "The current skewed revenue structure and insufficient digital competitiveness in the banking sector give the impression that banks avoid innovation and focus on easy business, which has led to negative perceptions regarding banks' efforts to generate profits. It is essential to transform into bold innovators."
Regarding recent win-win finance efforts, he said, "Banks have strived to be a pillar of support and a stepping stone for recovery for households and businesses, but the reality is that they have fallen short of the public's expectations. I believe this is because the focus has been on micro-level solutions rather than viewing the entire ecosystem from a macro perspective," emphasizing, "We must devise sincere plans that align with the public's viewpoint."
Based on this awareness, Chairman Cho called on the banking sector to focus on 'basics, change, and coexistence.' He stated, "For banks to fulfill their fundamental roles, they must return to basics. This includes providing customer-tailored products, strengthening financial consumer protection, and establishing an advanced internal control system that meets the heightened expectations of the public."
In this regard, he urged, "As various institutional changes are expected, such as strengthened responsibilities for executives and the introduction of accountability structures, banks must actively embrace these changes, reinforce internal control systems, and restore public trust. Additionally, reflecting the new digital environment, a more agile approach to meticulous soundness and liquidity management is necessary."
Especially, Chairman Cho reiterated, "As members of the economic ecosystem, banks have the responsibility to collaborate and coexist with all participants and to promote the maintenance of an efficient ecosystem. We must devise win-win plans that resonate from the people's perspective, not the banks'."
He concluded, "The environment surrounding banks may be like a new and unfamiliar path, but if we proceed unwaveringly with the resolve of 무신불립, we will regain the trust of the people. Let us all become the hope of the people and open the future together."
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