Financial authorities notify some savings banks of additional 'vulnerability'

As financial authorities further expand their "vulnerable" ratings on some savings banks' asset health indicators, discussions on imposing timely corrective measures are expected to continue.

The Financial Supervisory Service recently delivered to the Financial Services Commission the final evaluation grade of the management status evaluation of four savings banks as of the end of June last year.

Most of them are said to have received a grade 4, which means "weakness" in asset quality.

Earlier, the Financial Supervisory Service confirmed three vulnerable grades as of the end of March last year, and after the Financial Services Commission received a management improvement plan based on this, it took timely corrective measures to two Anguk and Raon Savings Bank.

According to the regulations on the supervision of the savings banking business, if the comprehensive evaluation grade of the management status evaluation is level 3 or the asset quality evaluation grade is level 4 or lower, it may be subject to timely corrective measures by financial authorities.

The timely corrective action is a management improvement measure that financial authorities give to insolvent risk financial companies, and in the highest level of orders, business may be suspended, merged or sold.