Former President Park Jae-shik of Korea Securities Finance Corporation will be the next chairman of Korea Federation of Savings Banks (FSB). Savings bank industry preferred a government official who has easy communications with financial authorities as performance of savings banks are expected to be worse this year.
FSB held a general meeting for its members at The-K Seoul Hotel and elected Park Jae-shik to be the 18th Chairman of FSB.
As a result, Chairman Park will lead 79 savings banks for the next 3 years.
Public participation for the chairman position of FSB had drawn huge interest as 7 candidates announced their intentions to run for the position.
“Personnel from private businesses understands the industry better.” said president of a savings bank. “However, presidents of savings banks decided that they need a chairman that can resolve current situations.”
Chairman Park has to solve many problems such as restoration of the industry’s image, deregulation, continuous reduction of highest interest rate, and others.
Reduction of deposit insurance rate is another problem that is mentioned. Savings banks are more frustrated at high deposit insurance rate than other financial companies. Savings banks pay high insurance rate as banks, insurance companies and financial investment companies, and savings banks are paying 0.08%, 0.15%, and 0.40% deposit insurance rates. It is heard that Chairman Park emphasized the need to reduce deposit insurance rate on this day.
“Chairman Park emphasized the need to reduce deposit insurance rate while bringing up problems that savings banks are currently facing.” said president of a savings bank. “We hope that Chairman Park can resolve such problems.”
Most of former chairmen of FSB were government officials.
“Although personnel from private businesses understand the industry better, they have limitations when it comes to communicating with authorities.” said a representative for the industry. “As a result, savings bank industry is more attracted to government officials.”
Staff Reporter Park, Yoonho | yuno@etnews.com