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FSC cautions banks to limit lending rates ahead of hikes

Oct 28,2017
The Financial Services Commission pressed banks to limit their lending rates on Friday as central banks at home and abroad are set to raise their key interest rates.

Kim Yong-beom, vice chairman of the regulator, warned major commercial banks not to excessively hike interest rates.

The vice chairman said that the Financial Supervisory Service will toughen monitoring on banks that charge unreasonably high interest rates to borrowers.

The regulatory agency also asked financiers not to recommend floating interest rates due to concerns over the ballooning volume of household debts. While the country is incentivized to follow through with the global trend of interest rate normalization, its record high household debts pose serious risks.

By Park Eun-jee