ID :
191921
Thu, 06/30/2011 - 05:58
Auther :
Shortlink :
https://oananews.org//node/191921
The shortlink copeid
Watchdog to unveil steps to overhaul savings banks
SEOUL, June 30 (Yonhap) -- South Korea's financial watchdog may unveil a set of measures to cope with ailing savings banks no later than September in an effort to overhaul the troubled sector, its head said Wednesday.
"When the time comes up, the watchdog will announce steps for restructuring troubled savings banks," Financial Supervisory Service (FSS) Gov. Kwon Hyouk-se told reporters. "A broad picture of which players are in trouble may come out in September or even before."
South Korea has suspended operations of eight troubled savings banks since early this year as they suffered from deteriorating asset quality due to soured construction loans. One player was sold to Woori Finance Holdings Co. and the government is seeking to sell the remainder in three packages.
Market speculation is growing that two or three players may face restructuring as the financial watchdog is determined to tackle the problems on concerns that a delay in the overhaul could increase systemic risks.
The delinquency rate of property-linked loans stood at 22.8 percent as of the end of March, sharply up from 8.7 percent from the end of June last year.
"When the time comes up, the watchdog will announce steps for restructuring troubled savings banks," Financial Supervisory Service (FSS) Gov. Kwon Hyouk-se told reporters. "A broad picture of which players are in trouble may come out in September or even before."
South Korea has suspended operations of eight troubled savings banks since early this year as they suffered from deteriorating asset quality due to soured construction loans. One player was sold to Woori Finance Holdings Co. and the government is seeking to sell the remainder in three packages.
Market speculation is growing that two or three players may face restructuring as the financial watchdog is determined to tackle the problems on concerns that a delay in the overhaul could increase systemic risks.
The delinquency rate of property-linked loans stood at 22.8 percent as of the end of March, sharply up from 8.7 percent from the end of June last year.
