Korea Federation of Banks Holds Meeting with Bank CEOs Inviting Lee Chang-yong, Governor of Bank of Korea

The Korea Federation of Banks announced on the afternoon of the 27th that it held a meeting with bank presidents invited by the Governor of the Bank of Korea at the Bankers' Hall in Jung-gu, Seoul. The meeting was attended by Lee Chang-yong, Governor of the Bank of Korea, Cho Yong-byeong, Chairman of the Korea Federation of Banks, and presidents of 16 member banks.

[Image source=Yonhap News]

Governor Lee and the bank presidents shared their perceptions of recent domestic and international financial market trends and discussed current issues in the banking industry during the meeting.

Chairman Cho stated, "As this is a critical time when uncertainties in the global economy are increasing due to prolonged high interest rates, the banking sector will work in unison with the Bank of Korea to manage risks such as household debt and real estate project financing (PF)." He added, "We will actively cooperate with the Bank of Korea's efforts to improve foreign exchange market accessibility, promote transactions of the risk-free benchmark interest rate (KOFR), and advance the CBDC project, as well as other initiatives to improve the financial industry structure."

Governor Lee explained the background of the monetary policy direction decided in May and emphasized the importance of managing the soundness and liquidity of banks, along with key financial and economic issues. He assessed that uncertainty regarding the timing of interest rate cuts has increased as confidence in the convergence of inflation targets has been delayed, and explained that the monetary policy direction for the second half of the year will be determined after comprehensively reviewing the risks of policy stance changes being either too fast or too slow.

Additionally, Governor Lee stressed the importance of continuing to manage household loans steadily while guiding corporate credit to flow into productive sectors. He also stated that he will continue to pay close attention to major financial and economic issues, including banking sector challenges, and will strengthen communication with the market going forward.