Financial Supervisory Service Governor Lee Chan-jin urged savings banks to take the lead in reducing interest burdens on ordinary citizens through expanding mid-rate loans and rationalizing loan brokerage fees.
Lee made the remarks during a meeting with savings bank CEOs at the Korea Federation of Savings Banks in Mapo-gu, Seoul, on Friday. He called on executives to review whether they have neglected consumer rights such as the right to request interest rate cuts and debt restructuring.
"Now that the sector's soundness has stabilized, it is time to return to the original role as partners supporting ordinary citizens, small and medium-sized enterprises, and regional economies," Lee said.
The savings bank industry's delinquency rate stood at 6.07% at the end of last year, down 2.45 percentage points from 8.52% a year earlier. The FSS plans to expand incentives for mid-rate loans to borrowers with mid-to-low credit ratings and for lending outside the Seoul metropolitan area.
Lee also noted the upcoming introduction of the accountability mapping system in July. "I hope this will serve as an opportunity to further strengthen internal control systems and loan screening frameworks," he said, adding, "Please also take to heart the importance of reinforcing financial soundness."