Three Commercial Banks Selected as Pioneer Banks

Cho Hung, Hanvit and Shinhan Bank were selected as 'pioneer banks' for their efforts in reforming their lending practices.
The Financial Supervisory Service (FSS) announced on June 13 that it chose the three banks to be industry leaders, so local banks could follow their good example of successful loan reform.
The FSS explained that these banks have removed the often indiscriminate and unsystematic lending practices, which had mainly been fostered by their presidents, by developing models for evaluating corporations' credit worthiness and introducing separate and specialized job positions to assess loans.
Cho Hung Bank was highly regarded for launching a credit evaluation system, an early warning system to monitor signs of possible insolvent companies, and a loan review system.
Hanvit Bank introduced a new model for evaluating corporations' credit through the assistance of a consulting company.
Last October, Shinhan Bank developed a rating system for credit estimation for the first time in domestic banking history and set loan limits according to set guidelines.

Jangsoo Seo:jsbee@joongang.co.kr