Industrial Bank: An Unwise Lender
The lax lending policies of Korea Industrial Bank have turned out to be more serious than expected.According to the Financial Supervisory Commission(FSC), on February 24, the bank has led a one-sided lending policy with few institutional safeguards normally observed by major banks. This has led to financial instability on a variety of levels.
Its excessive lending to Korea Electric Power reached 2.5 billion dollars and 1 billion to Samsung.
A source from the FSC said, 'Although the bank is a government-owned national bank with branches throughout the country, these kinds of lending practices are not healthy.'
The Korea Industrial Bank has 6.5 billion dollars in unstable loans, and last year its losses reached 4 billion dollars.
with the Korea JoongAng Daily
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