The four major banks ‘slightly’ increased their support by 2.84% to China’s financial crisis last year.

by times news cr

2024-05-07 23:46:12

[‘경제 버팀목’ 자영업이 쓰러진다]

The number of companies receiving ‘rapid financial support’ has decreased
“Conservatism in loan collection due to management difficulties still persists”

Data photo. News 1

Although the business situation of small businesses is deteriorating, with bankruptcies rapidly increasing and the burden of delinquency increasing, commercial banks appear to have been passive in providing financial support to small and medium-sized enterprises. It is pointed out that this is contrary to the successive measures taken to introduce win-win financing plans due to pressure from financial authorities.

According to the financial industry on the 7th, the amount of funds provided by the four major commercial banks, including KB Kookmin, Shinhan, Hana, and Woori Bank, to small and medium-sized businesses experiencing financial difficulties through the ‘Small and Medium Business Rapid Financing Support Program’ last year was approximately KRW 198 billion (including new and maturity extensions). , based on balance). This is an increase of approximately 2.84% compared to the previous year. On the other hand, the number of companies receiving support from this program was 280, a decrease of approximately 5.72% compared to the previous year. The number of companies receiving benefits has actually decreased.

An official from a commercial bank said, “In the case of the rapid financial support program, support is centered on IBK Industrial Bank, a government-run bank, so the participation of the four major banks is relatively low.” He explained, “The business environment is difficult, so we have no choice but to review loans rigorously.”

The small and medium-sized enterprise rapid financial support program, which has been in effect since 2008, is a measure by commercial banks to provide liquidity to small and medium-sized businesses experiencing a temporary funding crunch. Considering that the situation of small businesses has not improved since the novel coronavirus infection (Corona 19), the financial authorities expanded the support target for the program starting in April of this year. Support was provided not only to companies facing temporary liquidity risk but also to companies expected to be at risk.

Lim Chae-woon, professor emeritus at Sogang University Business School, pointed out, “The banking sector still has a conservative tendency, such as collecting loans to small and medium-sized businesses that are temporarily at business risk,” and added, “We need to change our business methods so that we can contribute to the industrial development of small and medium-sized businesses.”


Reporter Kang Woo-seok [email protected]

#bankruptcy of small businesses#financial difficulties

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2024-05-07 23:46:12

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