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Lee Bok-hyun, Governor of the Financial Supervisory Service (Photo = Yonhap News) |
[Alpha Biz= Kim Sangjin] Financial Supervisory Service (FSS) Governor Lee Bok-hyun is set to hold a series of meetings with CEOs from banks, insurance companies, securities firms, and credit card companies.
According to the FSS on Monday, Lee will first meet with the heads of major banks on the 19th, followed by a meeting with insurance company CEOs on the 27th. Subsequent meetings will be held with executives from the securities and credit card sectors. These meetings are expected to serve as a platform for discussing key industry issues and sharing the regulatory direction of financial authorities.
For the banking sector, household loans are a major concern. Earlier, Financial Services Commission Chairman Kim Byeong-hwan stated that the government aims to manage household debt growth within the range of nominal GDP growth. The government's forecasted nominal GDP growth rate for this year has been lowered from 5.9% last year to 3.8%.
Lee is also expected to address the issue of interest rate spreads. Major financial holding companies are projected to report record-breaking net profits in Q4 2023, largely driven by widened interest rate spreads. Bank lending rates consist of a base rate plus a spread, and financial institutions have reportedly raised these spreads, significantly boosting their earnings.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
