1. Reasons for Amendment
This amendment aims to increase the allowance for doubtful accounts for the real estate/construction industry to improve the soundness of the mutual financial businesses, provide a basis for comparative disclosure of the right to request a reduction in interest rates of unions as a follow-up measure to the "Measures for the Improvement of the Operation of the Interest Rate Reduction Request System" announced on October 29, 2021, and revise sub-provisions according to the revision of the regulations related to the management improvement recommendation of the Credit Union Federation and Article 45 of the Credit Union Act.
2. Major Provisions
A. Establish a standard for the range of interest rates on credit deposits (Article 6-4)
Establish a regulatory basis for the range of interest rates on surplus funds deposited from unions and managed by the Credit Union Federation.
B. Establish standards for the operation of return-seeking products (Article 6-5)
Provide a basis for operating surplus funds that the Credit Union Federation receives from unions as return-seeking products and submitting related returns to the Financial Supervisory Service.
C. Move the provisions on the sale of non-business real estate to a higher law (Article 10)
Legislate upward the provisions related to the sale of non-business real estate, which is stipulated in the current Regulation, into the Enforcement Decree of the Credit Union Act according to the revision of the Credit Union Act.
D. Provide grounds for comparative disclosure of interest rate reductions (Article 10-2 (5))
Provide grounds for the comparative disclosure of the performance of operating unions' interest rate reduction request right on the website of each mutual financial business federation.
E. Raise the mandatory accumulation rate of allowance for doubtful accounts (Article 12 (1) 2)
Increase the ratio of allowance for doubtful accounts for real estate and construction businesses of mutual credit unions from the current 100/100 or higher to 130/100 or higher.
F. Add requirements for mitigation/exemption from dispositions such as management improvement recommendations (Article 20-9 (2) and (3))
Stipulate that if the management status of the Credit Union Federation, which has received dispositions such as management improvement recommendations, is improved, dispositions such as management improvement recommendations shall be mitigated or exempted.
