Size of this month’s reserve determined
2 financial institutions expected to reserve billions,
,
, ‘[Seoul Economy]’,
,
, ‘Starting on the 11th, the Financial Supervisory Service will conduct on-site inspections targeting the NH Bank and savings banks that have inadequately conducted profitability assessments for real estate project financing (PF) projects.’,
,
, ‘According to financial authorities on the 9th, the Financial Supervisory Service plans to first inspect the performance evaluation records of the NH Bank. The soundness deteriorated significantly, with the delinquency rate soaring to the 6% range as of the end of last year, and there was a significant discrepancy between the evaluation results submitted by individual associations and the Financial Supervisory Service’s own evaluation.’,
,
, ‘The Financial Supervisory Service plans to conduct on-site inspections on 5-6 companies each in the savings bank and capital industries as well. After that, the inspection targets will be expanded to the securities industry, regional banks, and insurance companies. A financial authority said, “Through on-site inspections, etc., we plan to finalize the business evaluation results and the size of reserves on the 26th.”‘,
,
, ‘Previously, financial authorities strengthened the business evaluation criteria from the current 3 levels (sound, normal, deterioration concerns) to 4 levels (sound, normal, notable, insolvency concerns). For business premises classified as having insolvency concerns, financial institutions only need to set aside 30% of the loan amount as reserves, but if they are classified as insolvency concerns, they must set aside 75%. Therefore, credit rating agencies estimate that billions more in reserves will be needed for the second financial sector alone this year. A Financial Supervisory Service official said, “Reserves will be set aside based on strict business evaluations,” adding, “The deficit in the first half may be larger than initially expected.”‘,
,