The Financial Supervisory Service (FSS) has called on second-tier financial institutions to expedite the resolution of non-performing assets and maintain stable funding for local low-income individuals and small and medium-sized enterprises (SMEs).

Key Highlights:

Strengthened Soundness Management:The FSS requested the prompt resolution of non-performing assets through auctions, voluntary sales, and other means, along with the accumulation of sufficient loan loss reserves.
The FSS plans to monitor the soundness of financial institutions on a daily basis and promptly guide management normalization through on-site inspections and management evaluation when necessary.
Funding for Vulnerable Groups:The FSS urged institutions to utilize the lending capacity secured through soundness management to support vulnerable groups.
The FSS will provide institutional incentives for lending to individuals with low to medium credit scores and emphasize the strengthening of funding for local low-income individuals and SMEs.
Enhanced Internal Controls and Improved Business Practices:The FSS mandated the establishment of robust internal control measures to prevent financial accidents such as illegal and unfair lending and embezzlement.
The FSS asked financial companies to find new products and platforms in correspondence with mobile financial transaction and data based sales expansion.