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Poker
Joined: 16 Jan 2010
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 Posted: Fri Feb 18, 2011 10:55 pm Post subject: South Korea suspends four more savings banks |
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http://business.asiaone.com/Business/News/Story/A1Story20110219-264348.html
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SEOUL - South Korean financial regulators on Saturday imposed a six-month suspension of operations on four small-sized savings banks after the recent halt to businesses at two rivals sparked bank runs, Busan Savings Bank and Daejeon Savings Banks
The Financial Services Commission and the Financial Supervisory Service said in a joint statement that they had ordered the suspension of Busan2 Savings Bank, Jungang Busan Savings Bank, Jeonju Savings Bank and Bohae Savings Bank.
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http://www.zerohedge.com/article/bank-run-korea
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�I�ve saved 40 million won ($35,810) over my whole life. That money was going to be used for my grandson�s marriage but I cannot trust these people [bank employees] saying that I am guaranteed to get my money back,� said Cho So-young, 79.
Although operations of three of Busan Savings Bank�s four affiliates were not suspended, there are fears that they could be hit by a bank run on their deposits.
In the case of Busan II Savings Bank, its capital adequacy ratio stood at 6.0 percent as of the end of 2010, but its liabilities exceeded assets by 12.5 billion won.
Two other affiliates, Jungang Busan Savings Bank and Jeonju Savings Bank, have capital adequacy ratios of 3.6 percent and 5.6 percent, respectively. But they are unlikely to avoid a suspension of business if a bank run occurs.
The state-run Korea Finance Corporation and four commercial banks - Woori, Kookmin, Shinhan and Hana - have decided to inject 2 trillion won of emergency liquidity into the savings bank sector.
In addition, the government has decided to extend the amount of loans that can be borrowed by the Korea Federation of Savings Banks to support savings banks from the current 600 billion won to 3 trillion won.
Financial authorities are currently working to establish a joint deposit insurance account as a safety net for other financial sectors to curb the spread of possible financial risks from the savings banks. Funds for a joint deposit insurance account would be collected by financial institutions. |
Anyone bank with any of these institutions? Could this spread to the larger banks? |
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NohopeSeriously
Joined: 17 Jan 2011
Location: The Christian Right-Wing Educational Republic of Korea
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| Posted: Sat Feb 19, 2011 3:40 am Post subject: |
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| Some people say that is related to the Free Trade Agreement with the USA. Some people say that this is President Lee Myung Bak's plan to illegally embezzle some cash from the poor banks. Some people say this is a plot to kill smaller financial institutions to promote bigger banks. |
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RMNC
Joined: 21 Jul 2010
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| Posted: Sat Feb 19, 2011 3:48 am Post subject: |
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| Ah yes, nothing is more important in life than saving 39,000 dollars for your grandson's wedding. Durrrrr. Smart idea. |
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Epik_Teacher
Joined: 28 Apr 2010
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| Posted: Sat Feb 19, 2011 9:45 am Post subject: |
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| RMNC wrote: |
| Ah yes, nothing is more important in life than saving 39,000 dollars for your grandson's wedding. Durrrrr. Smart idea. |
At 79 years of age, you can pretty much do with your money what you want. What's he going to do, save it for old age?!?  |
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nw25th
Joined: 15 Feb 2009
Location: Daejeon
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| Posted: Sat Feb 19, 2011 8:29 pm Post subject: Re: South Korea suspends four more savings banks |
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| the misses has like 20 large in the Daejeon bank. She'll be able to get 15 back next month, but then will have to wait like 6 months to recover the rest. These banks are "high risk" because they other stupid silly high interest bearing accounts (hers was like 7.75%) so they sometimes crash. The bigger banks are fine, they don't offer crazy high interest accounts like that. |
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