Investment News
- Home
- About Us
- Newsroom
- Investment News
Regulator raps big bank dividends
제목 없음
South Korea's top financial regulator warned local financial groups Friday to
refrain from paying out massive dividends, requesting they reinforce their
public roles.
"It's true the finance industry's dividend payouts are bigger than other sectors," Financial Services Commission (FSC) Chairman Kim Seok-dong said at a seminar in Seoul. "Financial firms should not neglect their social responsibilities any longer."
Kim's remarks are the latest in a series of attacks on the finance industry amid growing criticism on the sector's corporate greed.
The top regulator stressed the need for banks to beef up capital to brace against a possible worsening of global economic uncertainties.
"Since external conditions are tough, (banks) should save up their profits to counter changes in economic circumstances," Kim told reporters ahead of the seminar.
"I hope banks will make the effort. The financial regulator will also review appropriate means," he said.
Kim also said financial firms should fulfill their roles by establishing transparent governance structures and helping small and medium firms to secure capital.
Criticisms of the local financial industry have been increasing amid forecasts that banks are expected to reap record profits on the back of a widening interest margin.
An official at the Financial Supervisory Service said the regulator will review ways to push banks to beef up provisions to cushion losses and to refrain from paying big dividends.
Meanwhile, the top financial regulator reaffirmed his stance on a pending decision over Lone Star Funds' 51.02 percent stake in Korea Exchange Bank (KEB).
"The FSC will make further decisions on Lone Star's eligibility as a major shareholder of KEB after Oct. 25. Price issues are not an area the regulator can intervene in," Kim said.
On Monday, the FSC sent an early notification to Lone Star ahead of requiring the fund to meet legal requirements as the major shareholder of the fifth-largest lender in South Korea, taking the first administrative step towards ordering the U.S. buyout firm to sell the bulk of its controlling stake in KEB.
Date
2011.10.21
"It's true the finance industry's dividend payouts are bigger than other sectors," Financial Services Commission (FSC) Chairman Kim Seok-dong said at a seminar in Seoul. "Financial firms should not neglect their social responsibilities any longer."
Kim's remarks are the latest in a series of attacks on the finance industry amid growing criticism on the sector's corporate greed.
The top regulator stressed the need for banks to beef up capital to brace against a possible worsening of global economic uncertainties.
"Since external conditions are tough, (banks) should save up their profits to counter changes in economic circumstances," Kim told reporters ahead of the seminar.
"I hope banks will make the effort. The financial regulator will also review appropriate means," he said.
Kim also said financial firms should fulfill their roles by establishing transparent governance structures and helping small and medium firms to secure capital.
Criticisms of the local financial industry have been increasing amid forecasts that banks are expected to reap record profits on the back of a widening interest margin.
An official at the Financial Supervisory Service said the regulator will review ways to push banks to beef up provisions to cushion losses and to refrain from paying big dividends.
Meanwhile, the top financial regulator reaffirmed his stance on a pending decision over Lone Star Funds' 51.02 percent stake in Korea Exchange Bank (KEB).
"The FSC will make further decisions on Lone Star's eligibility as a major shareholder of KEB after Oct. 25. Price issues are not an area the regulator can intervene in," Kim said.
On Monday, the FSC sent an early notification to Lone Star ahead of requiring the fund to meet legal requirements as the major shareholder of the fifth-largest lender in South Korea, taking the first administrative step towards ordering the U.S. buyout firm to sell the bulk of its controlling stake in KEB.
Source: Yonhap News (Oct. 21, 2011)