Arab Today, arab today savings banks allowed to offer consumer finance
Last Updated : GMT 09:58:39
Arab Today, arab today
Arab Today, arab today

Savings banks allowed to offer consumer finance

Arab Today, arab today

Arab Today, arab today Savings banks allowed to offer consumer finance

Seoul - Yonhap

South Korea plans to permit healthy savings banks to engage in consumer finance in a bid to help them secure stable sources of income, the financial watchdog said Wednesday. The Financial Services Commission (FSC) said consumer finance loans will be allowed for savings banks with more than 10 percent capital adequacy ratio and less than 8 percent sub-standard loan ratio. Consumer finance refers to the provision of loans to consumers who want to finance the purchase of big-ticket items such as autos, electronics and homes. The move came as local savings banks have been suffering from a pile-up in bad debt stemming from sour property loans, which has forced the FSC to suspend operations of eight players since January. Savings banks competitively extended such loans to small builders, riding a housing boom in 2005-06. But the global financial turmoil and a tepid housing market have turned those loans sour, compromising the health of local savings banks. \"Recent problems of savings banks came as they excessively focused on extending real estate loans because their role of offering loans were taken by consumer finance companies or private money lenders,\" Koh Seung-beom, director-general at the FSC\'s financial services bureau, said in a press briefing. \"The move aims to help savings banks beef up their competitiveness by leading them to serve as financial firms catering to low-income borrowers,\" Koh said. The FSC said 28 savings banks currently meet the financial conditions for engaging in consumer finance. Even though they could offer consumer finance, more than half of such loans should be provided to individual customers or smaller firms in the areas where the savings banks are located. In an effort to overhaul the ailing sector, the FSC launched on July 4 a two-month inspection into 85 savings banks to look into their financial health and determine whether to pump public funds into viable players. The regulator has requested all players submit self-rescue measures like asset sales or injections of funds by their largest shareholders. In the second half, the FSC plans to restructure the troubled industry based on the outcome of the inspection. The government said earlier it would pump public funds into viable savings banks to help their survival, but it may weed out non-viable players in a bid to prevent their potential defaults from weighing on the financial system.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today savings banks allowed to offer consumer finance Arab Today, arab today savings banks allowed to offer consumer finance

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 06:04 2017 Tuesday ,28 March

Saudi Arabia ranks 3rd globally for smartphone use

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday