Starting in the third quarter, the Financial Supervisory Service will establish a continuous monitoring system to periodically check each bank customer's loan principal, interest rate, maturity and other details. The Financial Supervisory Service (FSS) plans to collect detailed bank loan data for supervision and, if necessary, conduct examinations.
On the 6th, according to the financial sector, the Financial Supervisory Service (FSS) and the banking sector are pushing a project to build a "microdata (account-level detailed data)-based supervision system." The FSS plans to complete the system for collecting detailed data on loans to corporations in September this year, and on personal loans next year.
The microdata include detailed items such as the principal, interest rate and maturity of loans for each account held by individual or corporate customers. The FSS decided to have banks share the data periodically without separate processing and to accumulate it. If issues are found when reviewing the data, the FSS will conduct thematic examinations or regular examinations.
The FSS will apply the system first to loans to corporations, where financial incidents are frequent. In 2024, the FSS conducted examinations of Woori, KB Kookmin and NH Nonghyup Bank and uncovered 387.5 billion won in improper loans, most of which at the time were loans to small and midsize enterprises or real estate project financing (PF).
The FSS is said to be considering receiving the data on a monthly basis. The FSS plans to minimize unnecessary data collection, including by encrypting personal information.
The FSS currently receives bank loan data through CPC (Central Point of Contact), a system for requesting the submission of financial companies' business reports. Data collection takes considerable time, and detailed data require separate requests.
Once the system is in place, the ability to spot improper loans early is expected to be strengthened because loan details can be closely examined for each borrower (a person who has taken out a loan).