Shinhan 銀 best practices sharing… Ask the bank to have an annual plan with no interruptions to lending
Reinforcement of frequent monitoring of loan balance… Sanctions for breach of loan eligibility
As the financial authorities began to tighten household debt, they decided to strengthen monitoring of banks and the CEO’s responsibilities next year to prevent a ‘loan suspension’ or ‘first-come-first-served loan’ situation like this year.
This is due to aggravating difficulties for financial consumers, such as ‘loan queues’ taking place every quarter or every month as the total loan amount management becomes tight due to the strengthening of household debt management this year.
According to the financial industry on the 31st, the Financial Services Commission and the Financial Supervisory Service (FSC) are concerned about the possibility of recurring ‘first-come-first-served loans’ at commercial banks as they lowered the growth rate of household debt to the 4-5% level next year. We plan to actively guide the supply of loans in a stable manner.
This is because banks will have to manage household loans more tightly than this year in order to meet their household debt growth target next year.
For this reason, the financial authorities demanded that commercial banks prepare and submit a thorough plan so that annual loans can be made without interruption.
In particular, when submitting a household debt management plan for each financial company, the CEO and the board of directors are required to report, so that the CEO takes responsibility and prevents the ‘first-come-first-served loan’ situation.
He also ordered that Shinhan Bank be benchmarked by sharing cases of financial companies that have managed annual loans well this year.
In the case of financial companies such as banks, the annual loans are managed quarterly, but in reality, they are exhausted at the beginning of the year and the loans are blocked at the end of the year.
NH Nonghyup Bank stopped selling new secured loans, including jeonse loans, at the end of August when the growth rate of household debt exceeded the 7% range.
Accordingly, the financial authorities will strengthen monitoring not only quarterly, but also monthly or ad hoc, and if they are found to have violated the loan suitability or adequacy principle, they will be subject to sanctions through inspection by the Financial Supervisory Service.
On the 26th, Koh Seung-beom, chairman of the Financial Services Commission, said, “We will distribute loans evenly on a quarterly basis so that there will be no interruptions.”
An official from the financial authorities said, “In the case of Nonghyup Bank, the loan limit was exhausted in the first half of this year.
The official said, “The purpose is to take the exemplary loan management system like Shinhan Bank as a case and manage it well.”
He said, “Of course, this may change depending on the economic situation, but I will tell you to make a plan and submit it properly so that you do not fail to meet the annual loan management goal by simply dividing it by 1/12. added.
Another official said, “We leave it up to the bank to take care of the loan volume for next year, but we continue to check it monthly,” he said.
Earlier, the Financial Services Commission announced plans to manage household debt on the 26th and decided to significantly accelerate the implementation time for each borrower (per individual) total debt-to-income ratio (DSR) regulation in stages.
The ‘DSR 40% per individual’ regulation will be applied early when the total loan exceeds 200 million won from January next year, and when the total loan exceeds 100 million won from July next year.
This means that not only apartments, but also non-housing mortgage loans such as officetels, shopping malls, and land are also subject to DSR, which increases the loan burden for asset owners and investors, except for end-users who need a jeonse loan.
/yunhap news
