The Financial Services Commission is expected to issue a timely corrective action against Sangsangin Plus Savings Bank.
According to the financial sector on the 25th, the Financial Services Commission is set to hold a regular meeting that day and issue timely corrective action against Sangsangin Plus Savings Bank. Timely corrective action is an administrative measure requiring financial institutions with deteriorating soundness to improve their management. Depending on the state of soundness, there are three levels of disposition: recommendations, demands, and orders, and Sangsangin Plus Savings Bank is expected to receive a demand. Accordingly, Sangsangin Plus Savings Bank is likely to submit a management improvement plan for the next year to the financial authorities.
Sangsangin Plus Savings Bank is receiving timely corrective action because its soundness has deteriorated due to the failure of real estate project financing (PF) businesses. As of the end of March this year, the arrears rate of Sangsangin Plus Savings Bank stands at 21.25%, and the ratio of non-performing loans, which indicates the proportion of troubled assets, is 24.74%. Last year, Sangsangin Plus Savings Bank recorded an operating loss of 37.9 billion won.
A representative from Sangsangin Plus Savings Bank said, "We are committed to soundness management under the guidance of financial authorities, and since our capital adequacy ratio, based on the Bank for International Settlements (BIS) standards, exceeds 10%, there are no significant issues regarding soundness."