If you retire voluntarily, 400 million more...Banks' "money feast" controversy amid the pain of ordinary people [Y Record]

■ Host: Anchor Lee Jung-seop, Anchor Kim Jung-jin
■ Starring: Lee Jung-hwan, professor of economics and finance at Hanyang University

* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate information. Please specify [YTN News START] when quoting.

◇Anchor> There are also articles saying that banks had a money party by collecting a lot of interest income amid continuous financial accidents. How do you see this part?

◆Lee Jung-hwan> There are stories that banks' interest income has increased by an all-time high. At the root of that, there is a huge increase in loan assets. Since the 2010s, banks have often referred to their growth strategy as net interest margins, but rather than increasing the difference between loan interest rates, capital raising costs, and savings rates, they have formed a structure that can accumulate profits by increasing loans, especially by increasing mortgage loans. And if you look at the annual growth rate, it grew by 10%. Since the loan balance has increased very quickly, the increase in the loan balance over the past 10 years is not a common margin, but a structure in which net profit is accumulated as the scale increases significantly rather than the difference in the loan-to-deposit interest rate. How do you use these things when interest is accumulating? Now, there are opinions that you are spending too much on things like voluntary retirement. Isn't it that wages are excessive in the financial sector as there are rumors that wages are higher than those of Samsung Electronics and Hyundai Motor? There are continuous opinions that retirement benefits and other things are being overestimated. Banks themselves continue to reduce sales and management costs because they compete with online banks. There are incentives to reduce these employees and incentives to go online, which are being criticized for increasing loans too much and increasing stable mortgage loans to do interest business, but there are also some aspects that seem to be true at first glance.

◇Anchor> Professor, I believe that the banking sector's operating profit will continue to increase as loan interest rates rise in this situation. Do you think this trend will continue in the future? What do you think?

◆Lee Jung-hwan> As I said earlier, it is said that it is a net interest margin, but the difference in deposit and loan interest rates has not increased that much compared to the past. Since it has grown so big, it is said that household loans continue to exceed record highs, but as it increases, it is inevitable that issues will arise. This problem will inevitably continue in the future. And there is also a story about banks to do something other than the commonly called credit work. So, there is a story to strengthen non-interest income, not this commonly called interest income, but there are aspects that Korea has severe platform regulations, so banks can't do as much as they want. And there may be differences between the financial supervisory authorities and the government, and the financial supervisory authorities' good profits can also be helpful in terms of the financial system safety net. When I think about the IMF period, there was a financial crisis when banks became insolvent, and it's not just a bad thing to take a lot of profits from banks, so I think I can tell you that a sound financial system will be created only when regulatory reforms that can be properly balanced and non-interest income are overlapped.

◇Anchor> They pointed out that since there are so many loans that have been executed, interest is expected to continue to accumulate.

Excerpted from
: Lee Sun Digital News Team Editor

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