Leaders of South Korea’s top banks met on Wednesday at the Korea Federation of Banks.
The bank heads urged lawmakers to ease stringent regulations. They met with members of the People Power Party at the meeting venue in Seoul.
The group stressed the need to support crypto exchange collaborations and reduce industrial loan risk weighting. They aimed to help struggling industries and boost the overall economy. They discussed these changes in a meeting that lasted about one hour.
Meeting With Lawmakers
During the gathering, executives shared their views clearly with the lawmakers. They argued that current rules hurt financial growth and innovation in both industries. The bank leaders detailed challenges faced by the economy under strict regulations.
They explained that a reduced risk weighting on industrial loans would let banks lend more actively. Lawmakers listened intently as the bank presidents made their case.
They discussed expanding ties with virtual currency exchanges to ease financial constraints. The session provided a platform for both sides to understand each other’s needs.
Proposals for Regulatory Changes
The meeting saw several proposals put forward by top banking executives. Shinhan Bank President Jeong Sang-hyeok proposed a lowering of the risk weighting for industrial loans.
This change would help companies in difficult times gain more support. The bank leaders stated that easing regulatory burdens was vital to support struggling industries. They argued that fewer restrictions would let banks expand their lending to benefit businesses.
They also requested a more flexible approach when it came to disclosures on financial accidents. Their suggestions aimed to remove obstacles in supporting local businesses. Each bank president shared ideas on how to foster a stronger financial system.
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Lawmakers’ Positive Response
Lawmakers from the People Power Party’s Political Affairs Committee expressed encouraging views. Kang Min-guk, one of the lawmakers, said that the proposals were persuasive and made good sense. He noted that parts of the economy suffered from a lack of support and effective policies.
The decision to discuss crypto-collaboration regulations was met with open interest. This openness signals a potential easing of restrictions soon.
Discussions centered around aligning banking policies with economic recovery efforts. Both sides agreed that modernising rules would help secure financial stability.
Future Support and Wider Economic Impact
Bank officials stressed the need for an improved connection between banks and crypto exchanges. Woori Bank President Jeong Jin-wan argued that the current one exchange-one bank rule must change.
He said that expanding to a one exchange-multiple bank approach would remove unnecessary restrictions. Lee Ho-sung of Hana Bank asked for a larger Youth Employment Linkage Fund to support small business owners.
He noted that the present fund barely meets the needs of emerging entrepreneurs. Cho Yong-byeong, chairman of the Korea Federation of Banks, promised more financial help during difficult times.
He mentioned efforts to adjust loan interest rates and extend loan maturities for businesses affected by adverse conditions. These proactive measures seek to build resilience in the economy.
The discussions highlighted urgent needs within South Korea’s financial sector. Bank leaders and lawmakers agreed on the importance of easing rigid regulations to protect the national economy. By lowering loan risk weights and improving crypto exchange policies, the industry aims to support struggling companies better.
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