Press Releases - Financial Services Commission

Press Releases

Period: start
~
end

1month 3month Reset

Requirement

May 10, 2005

Domestic Banks Report Net Income Totaling KRW2.76 Trillion For the First Quarter of 2005

Preliminary figures show that domestic banks’ net income for the first quarter of 2005 totaled KRW2.76 trillion, up KRW1.05 trillion or 61.2% from KRW1.71 trillion a year earlier. Income before provisioning for loan losses (including nonoperating income) totaled KRW4.62 trillion, which is KRW616.0 billion or 11.8% less than KRW5.24 trillion a year earlier, indicating most of the gains resulted from lower provisioning in the quarter.Interest income for the first quarter totaled KRW6.30 trillion, down KRW330.5 billion or about 5% from KRW6.63 trillion a year earlier, on falling interest margins amid increasing competition in the banking sector. As a result of drop in fee income and securities trading income, non-interest income fell by KRW250.4 billion or 16.2% in the quarter.* Please refer to the attached PDF for details.
Attachment 1
Apr 25, 2005

New Amendments to Regulation on Supervision of Securities Business to Ease Securities Trading Rules for Foreign Investors

The FSC/FSS adopted amendments to Regulation on Supervision of Securities Business on April 22 that will ease rules on bulk transactions and allow the use of “special nominee accounts” for foreign investors. The following is a summary of the newly amended regulation.Use of special nominee accounts for foreign investorsThe FSC/FSS adopted the use of “umbrella accounts” for foreign investors in January 2002 that allows a group of registered foreign investors run by the same entity (foreign investor group) to execute securities trading on a bulk transaction basis under a single designated investor account and distribute the executed trades individually. Under the amended regulation, securities companies may open and manage special nominee accounts to execute aggregated trading orders from foreign investor groups on a bulk transaction basis and distribute them individually. Thus, foreign investor groups may now utilize both umbrella accounts and special nominee accounts to meet their trading needs.More specific provisions on distribution of bulk transactionsThe amended regulation specifically provides that securities companies may distribute a bulk transaction executed to the individual accounts of a foreign investor group at a price which is determined using methods (e.g., a volume weighted average price) agreed in advance.Simplified reporting for foreign investor groupsThe amended regulation removes provisions that required foreign investor groups to file a report with the FSC/FSS before acting collectively as an investor group. Under the amendments, foreign investor groups only need to inform securities companies of the individual investors of the group before trading collectively.Expanded OTC securities trading for foreign investorsForeign investors may now engage in OTC (outside the stock exchange) securities trading under open, competitive bidding in Korea as well as OTC acquisition of securities with warrants.New safeguards on distribution of securities c
Attachment 1
Apr 07, 2005

Correction to April 3 Yonhap News Article

1. Summary of Yonhap News ArticleThis regards April 3 Yonhap News article “Financial Supervisory Authority, putting a brake on outflows of capital in the form of high dividend payments”. The following is a summary of the article;[The financial supervisory authority is preferentially reviewing plans to tighten the requirement for ‘appropriated retained earnings for financial structure improvement’ which is currently stipulated in the FSC regulations in an attempt to reduce dividends payable and hence to prevent high dividend payments to shareholders]2. Correction to the articleThe Financial Supervisory Commission hereby issues a correction to April 3 Yonhap News article entitled “Financial Supervisory Authority, putting a brake on outflows of capital in the form of high dividend payments”. The FSC has not undertaken any review on plans to tighten the requirement for ‘appropriated retained earnings for financial structure improvement’ in the FSC regulations and would like to take this opportunity to inform that the Yonhap News article is not based on facts.* Please refer to the attached PDF for details.
Attachment 1
Apr 01, 2005

Correction to March 31 Financial Times Article "Seoul's new rules anger overseas investors" by Anna Fifield

The FSC/FSS and the Ministry of Finance and Economy hereby issue a correction to March 31 Financial Times article entitled “Seoul’s new rules anger overseas investors.” The article misinterprets the recently amended “5% rule,” labeling it a “draconian” requirement and a move designed to tighten controls on foreign investors. In particular, the article stretches the 5% rule to suggest that it was connected to the equity investment in SK Corp. by Sovereign Asset Management and the gains recently achieved by Newbridge Capital after selling its stakes in Korea First Bank.The 5% rule was first established with an amendment to the Securities and Exchange Act in 1991. The newly amended 5% rule was passed by the National Assembly on December 31, 2004, promulgated on January 17, 2005, and took effect on March 29, 2005.It is important to note that the 5% rule is widely adopted and enforced in many countries—particularly stringently in the U.S.—and Korea’s 5% rule is modest with respect to the kinds of disclosure compliance it requires from investors. Thus, the assertion made in the FT article that Korea’s 5% rule is “draconian” is a hyperbole and a mischaracterization that can only be expected from uninformed or misinformed observers.Moreover, as the FSC/FSS has pointed out on numerous occasions, the changes adopted to the 5% rule were intended only to replace broadly worded provisions with more specific and unequivocal rules. It was never intended to control the “pernicious” effects of foreign capital as the article falsely asserted.The FSC/FSS and the Ministry of Finance and Economy further note that the amended 5% rule is part of the ongoing effort to raise Korea’s corporate governance to the highest global standards. It is not related in any way to particular foreign investors and is applied equally and fairly to all investors, domestic and foreign. It is certainly not intended to tighten controls on foreign investors.The FSC/FSS and the Mi
Attachment 1
Mar 15, 2005

Correction to March 15 Dow Jones Newswires Article Entitled “S. Korea FSC Chmn: Asia Can’t Keep Financing US Debt”

The FSC/FSS hereby issues a correction to an online Dow Jones Newswires article entitled “S. Korea FSC Chmn: Asia Can’t Keep Financing US Debt” by James Simms. Chairman Yoon did not say “Asia can’t keep financing US debt” as the title of the Dow Jones newswires article stated and suggested. Chairman Yoon merely noted, in a reference to various regional issues that call for close cooperation among the region’s supervisory authorities, that the trade imbalance between Asia and the U.S. could potentially pose a risk to the global financial system. The speech by Chairman Yoon was strictly confined to a need for close cooperation among the region’s supervisory authorities.* Please refer to the attached PDF for details.
Attachment 1
Mar 10, 2005

BIS Capital Adequacy Ratio of Domestic Banks Averages 12.09% at the End of 2004

Preliminary figures show that the BIS capital adequacy ratio of domestic banks at the end of 2004 averaged 12.09%, up from 11.16% a year earlier and the highest ratio ever. The capital adequacy ratio rose for 12 banks and fell for 7 banks for the year.Risk-weighted assets rose 4.2% during 2004, but the increase was easily offset by a 12.9% jump in bank capital on the back of KRW8.8 trillion in net income for the year and capital increases by the government in Korea Development Bank. The quality of bank capital also showed much improvement in 2004 with Tier-1 capital rising KRW9.5 trillion compared with an increase of KRW300 billion for Tier-2 capital.With a KRW37.8 billion drop in Tier- 2 capital, the six regional banks saw their average BIS capital adequacy ratio fall slightly in 2004 to 11.02% from 11.13% a year earlier. The drop, however, does not appear to warrant any particular concern as the regional banks maintained an overall ratio above 11% and thus did not need to issue high-yield subordinated bonds for Tier-2 capital.* Please refer to the attached PDF for details.
Attachment 1
Feb 17, 2005

The FSS Issues Guidance on Reporting Requirements under the Amended “5% Rule” Set to Take Effect in March

The FSS issued the following guidance on the reporting requirements under the amended “5% rule” set to take effect on March 29 to help investors and companies avoid unnecessary confusion and ensure full compliance with new reporting regimes. Currently, the 5% rule requires an investor who acquires 5% or more of a publicly traded company’s total outstanding shares or changes his share ownership by 1% or more thereafter to disclose it within five days from the date of the transaction.Re-filing of disclosures for investors subject to the 5% ruleUnder the amended provisions, an investor who previously filed a disclosure under the 5% rule with “Exercising Influence on the Management” of the investee company as the intended purpose of the investment must re-file a disclosure on the share ownership and the intended investment purpose within five days after the new reporting requirements take effect on March 29. That is, an investor who holds 5% or more of the company’s shares with Exercising Influence on the Management as the intended investment purpose as of the effective date must file a new disclosure using a new reporting format between March 29 and April 2 even if one were filed prior to March 29 and no change in share ownership had occurred since. Thus, the new reporting rule is applicable to both investors who previously stated Exercising Influence on the Management as the investment purpose as well as investors who changed the investment purpose to Exercising Influence on the Management after a previous filing. Investors who disclosed the investment purpose as “Investment Only” are excluded from the new reporting requirements.Five-day “cooling-off period” after reporting Exercising Influence on the Management as the intended investment purposeThe amended provisions pertaining to the 5% rule also mandate a five-day “cooling-off period” during which investors who declared Exercising Influence on the Management as the investment purpose are bar
Attachment 1
Feb 03, 2005

Correction to Feb.2 Korea Times Article on FSS Investigation of Hermes Investment Management

The Financial Supervisory Service hereby issues a correction to an article concerning Hermes Investment Management that appeared on Korea Times on February 2. The Financial Supervisory Service is currently investigating the trading of shares of Samsung Corporation by Hermes Investment Management and the trading of shares of LG Card by Warburg Pincus for possible unfair trading. The investigations are ongoing, and no decision has been made about what actions the Financial Supervisory Service will take.* Please refer to the attached PDF for details.
Attachment 1
Feb 02, 2005

Bank Loans Classified as Substandard or Below Fall in 2004

Preliminary figures compiled by the FSS show that bank loans classified as substandard or below (SBLs)—substandard, doubtful, or presumed loss—totaled KRW13.9 trillion at the end of 2004, down KRW4.8 trillion from KRW18.7 trillion a year earlier. The ratio of SBLs to the total outstanding loans dropped to 1.90% from 2.63% a year earlier.A breakdown of the SBLs shows that SBLs from business loans totaled KRW8.3 trillion (1.92%), compared with KRW4.3 trillion (1.57%) from household loans and KRW1.3 trillion (5.16%) from credit card assets.Domestic banks resolved or cleaned up SBLs totaling KRW31.1 trillion during 2004. They included loan write-offs totaling KRW12.8 trillion, reclassified SBLs totaling KRW6.6 trillion, and loan collections including disposition of borrower collateral totaling KRW5.7 trillion. New SBLs during 2004 totaled KRW26.2 trillion, compared with KRW35.3 trillion during 2003.As of the end of 2004, none of the domestic banks had an SBL ratio above 3% (Jeju Bank’s 2.82% was the highest). The SBL ratios for 15 banks fell while those for four banks slightly rose in 2004 (see the attached table for a complete list of the banks and their ratios for 2004).* Please refer to the attached PDF for details.
Attachment 1
Jan 18, 2005

FSS Announces Major Organization & Workforce Changes

The FSS announced the results of the organization and workforce innovation initiative that was launched in October of 2004 to renew and reinvigorate the FSS as an efficient and effective supervisory organization backed by a highly specialized workforce capable of meeting the ever-growing demands and challenges of the marketplace.The organization and workforce innovation initiative, prompted and driven by the growing market demand for highly efficient and specialized supervisory services, brings about a number of major changes to the current examination structure, seeks greater synergy from the integrated supervision, creates a macro-supervision department to help formulate forward-looking supervisory policies, and institutes workforce changes that stress performance-based personnel management and pay. To provide independent perspectives and expertise in implementing the organization and workforce initiative, A.T. Kearney participated in the initiative as an outside consultant.SUMMARY OF ORGANIZATIONAL INNOVATION1. Reorganization of the examination structureThe examination staff and departments are restructured with the goal of enhancing the ability of the examiners to conduct onsite examinations “whenever necessary, to the extent necessary, and with the examiners necessary” on the basis of the continuous surveillance of financial institutions and to minimize the burden financial institutions face in complying with FSS examinations. The examination teams, which are divided into offsite surveillance and onsite examination teams, are merged together to enable the examiners to carry out both offsite surveillance and onsite examination simultaneously. With the transition to the “relationship manager” system, each examination team is to be assigned specific financial institutions to monitor and examine. An examination support department, staffed by examiners with technical expertise in risk management, IT and other specialized areas, is also newly created to suppo
Attachment 1
Dec 23, 2004

New Basel Capital Accord to be Implemented by Year-End 2007

The FSC/FSS announced on December 21 that it had set year-end 2007 as the target date for the full implementation of the New Basel Capital Accord (Basel II). All domestic and foreign banks operating in Korea are to come under the new capital adequacy framework. The selection of the methodologies to be used for calculating the capital requirement is to be left to each individual bank.Implementation timetable for the new accordThe year-end 2007 implementation timetable was made in consideration of the progress of domestic banks with preparations for the new accord. Because the use of internal ratings broadly in line with the minimum requirements must be satisfied for at least two years— three years for advanced IRB approaches—before the new accord takes effect, and domestic banks are expected to complete their credit risk rating systems for the new accord by the end of 2004 or early 2005, it was decided that year-end 2007 implementation timetable was appropriate.A number of other considerations also weighed on the decision to set year-end 2007 as the target date for the new accord. They include the ongoing efforts to improve domestic banks’ risk assessment and management capabilities, the transition to risk-based supervision, and the desire to strengthen market discipline through more specific and stricter risk- and capital-related disclosures.Likely impact of the new accord on domestic banksWith capital increases, higher proportion of earnings retained and portfolio adjustments, domestic banks are expected to see only slight changes in their capital ratios initially when the new accord takes effect in late 2007. With respect to bank lending to small- and medium-sized enterprises (SMEs), the impact of the new accord is expected to be limited with preferential treatments that the new accord provides to banks with credit exposures to SMEs in determining the risk-weighted assets. Likewise, the impact of the new accord on the domestic asset-backed securities market
Attachment 1
Dec 07, 2004

Domestic Banks Report Net Income Totaling KRW5,679.3 Billion for the First Three Quarters of 2004

Domestic banks reported net income totaling KRW5,679.3 billion for the first three quarters of the year, up KRW4,075.4 billion from KRW1,603.9 billion a year earlier. Higher interest income from increased lending amid stable interest rate spreads, a drop in provisioning for problematic loans and a jump in investment income and bancassurance revenues helped to push the net income higher. The ROA of the 19 domestic banks averaged 0.74%, compared with 1.38% for U.S. commercial banks (first half, 2004) and 1.25% for the top 5 banks of the U.K. (2003).Loans classified as substandard or below (SBL) fell KRW1,059.1 billion to KRW17,619.3 billion from KRW18,678.4 billion at the end of 2003. The ratio of SBL to total loans outstanding (SBL ratio) also fell to 2.37% from2.63% during the same period on a large drop in SBL related to SK Networks and a general improvement in loan asset soundness.* Please refer to the attached PDF for details.
Attachment 1
Sep 23, 2004

The Securities and Futures Commission Announces Sanctions against Hynix Semiconductor Inc. for Accounting Violations

The Securities and Futures Commission today announced sanctions against Hynix Semiconductor Inc. for the accounting violations discovered by the Financial Supervisory Service after an extensive audit review of the company’s financial statements. The sanctions announced include: a monetary fine of KRW2 billion against the company, referral of the former CEO of the company to the Prosecutors’ Office for criminal penalties, a signed pledge of compliance by the current CEO, monetary fines totaling KRW770 million against the company’s outside auditor and a recommendation for suspension of future audits for two individual auditors. The monetary fines imposed on the company and its outside auditor by the SFC will be finalized by the Financial Supervisory Commission.Hynix Semiconductor Inc. was found to have overstated its assets by reporting interest and other expenses as assets for construction-in-progress for the accounting years from 1996 to 1999 and reported depreciation expenses and asset impairment losses from the inflated assets during 2000-2003. The company also improperly deferred selling and administrative expenses from the applicable accounting period.For the fiscal year 2003, Hynix also misreported as non-operating expenses (rather than as an adjustment to the retained earnings) error corrections totaling KRW568.1 billion from the previous year and made improper footnote entries. The SFC noted that the accounting violations that occurred prior to 2003 have been appropriately addressed and that the company’s balance sheet for the fiscal year 2003 did not contain overstated assets or understated liabilities. In addition, Hynix’s financial statements beginning with the fiscal year 2004 are not expected to be affected by the previous accounting violations.The SFC also noted that the sanctions issued against Samil, Hynix’s outside auditor, were fully warranted given the auditor’s failure to properly account for the numerous shortcomings that have been
Attachment 1
Sep 22, 2004

BIS Capital Adequacy Ratio of Domestic Banks As of the End of June 2004

The BIS capital adequacy ratio of domestic banks as of the end of June this year averaged 11.73%, up from 11.20% at the end of 2003 and the highest since 11.95% at the end of the first half of 2001. The ratios rose for 12 banks and fell for 7 banks since the beginning of 2004.A modest 3.4% increase in risk-weighted assets coupled with a fairly large KRW3.6 trillion jump in net income and an increase in government equity in the Korea Development Bank helped to push the overall BIS capital adequacy ratio for the first half of the year. Domestic banks also achieved a qualitative improvement in their capital base with Tier-1 capital rising KRW5.2 trillion won during the first half, compared with an increase of KRW1.1 trillion for Tier-2 capital.* Please refer to the attached PDF for details.
Attachment 1
Sep 20, 2004

September 20 News Article in the Seoul Economic Daily Concerning Accounting Misconduct by Hynix Semiconductor Inc.

The following is a response to the September 20 news article by Seoul Economic Daily that the Financial Supervisory Service found, through its own investigation, the size of the accounting misreporting by Hynix Semiconductor Inc. that had been carried over from Hyundai Electronics Industries Co. to be significantly larger than what the government prosecutors have found.The Financial Supervisory Service was informed by Korea Deposit Insurance Corporation of potential accounting violations by Hynix Semiconductor Inc. for the accounting periods from 1996 to 1999. Based on this information, the Financial Supervisory Service completed an investigation of the company’s accounting for the fiscal years from 1999 to 2003 and whether the company’s outside auditor engaged in negligent audit. The investigation found that the misreporting mostly took place in the past and that it had already been appropriately resolved.The investigation found that the company overstated the size of its fixed assets by treating certain expense items as assets for construction-in-progress and took out depreciation expenses and losses from asset impairment. The company was also found to have improperly deferred certain selling and administrative expenses into the future years.For the fiscal year 2003, the company was also found to have improperly reported correction of errors totaling KRW568.1 billion from the previous fiscal year by misapplying the correction items or by making incorrect footnote entries in the company’s financial statements. But since the company corrected all of past errors and neither overstated its assets nor understated its liabilities in the balance sheet, the financial statements beginning with the fiscal year 2004 will not be affected in any way by the past misreporting.The Audit Review Committee of the Financial Supervisory Service convened on September 17 to review the accounting matters concerning Hynix Semiconductor Inc. as well as possible audit negligence by th
Attachment 1
Sep 10, 2004

Findings of General Examination on Kookmin Bank

The Financial Supervisory Service conducted a general examination on Kookmin Bank from April 7 to May 12, 2004, with a particular focus on the bank’s management status evaluation and its compliance with the Banking Act and other pertinent laws and regulations. The findings of the general examination are summarized as follows:1. Results of the Management Status EvaluationThe overall rating for Kookmin Bank’s management status evaluation as of the end of March 2004 fell by one grade from the previous overall rating Kookmin Bank received at the end of September 2002. Because of weaknesses in the bank’s asset quality, profitability, capital adequacy and business management, more than the customary disciplinary warning is required to appropriately address them.In particular, the bank’s asset quality significantly deteriorated. As of the end of March 2004, the loan default ratio (defaulted loans over total loans outstanding) was 4.42%, and the ratio of loans classified as substandard or below (sum of loans classified as substandard, doubtful or presumed loss over total loans outstanding) reached 4.24%, comparatively higher than those of other banks. These ratios reflect structural weaknesses in the bank’s loan portfolio burdened by exposures to economy-sensitive sectors (e.g., credit card, households, and small and medium-sized companies) and high -risk businesses as well as realization of distress in the bank’s credit card business with relatively large potential losses.Mostly as a result of deteriorating asset quality and loan -loss provisioning, Kookmin Bank recorded net loss of KRW753.3 billion for 2003. For the first half of 2004, Kookmin Bank’s net income came to KRW307.6 billion, which is comparatively smaller than net income reported by other banks. For the year from April 2003 to March 2004, Kookmin Banks’ ROA was -0.52%.As of the end of March this year, Kookmin Bank’s BIS capital adequacy ratio fell below the 10.86% average to 10.11% mostly as
Attachment 1
Aug 30, 2004

The Securities and Futures Commission Takes Disciplinary Measures Against Kookmin Bank for Accounting Irregularities

On August 25, 2004, the Securities and Futures Commission (SFC) announced that Kookmin Bank will be fined KRW 2 billion for accounting standard violations in its 2003 financial statements. The monetary fine is pending final approval from the Financial Supervisory Commission (FSC). In addition, the SFC will designate an outside independent accounting firm to audit the bank for the next two years.These above sanctions are based on the Act on External Audit of Corporations, which grants the SFC statutory authority to make the final ruling on Kookmin Bank's accounting irregularities. The Sanction Committee and the FSC will deliberate further sanctions against Kookmin Bank and its employees upon review of the results of the Financial Supervisory Service's examination of the bank's accounting and banking activities.The SFC has also taken disciplinary measures against Samil Accounting Corporation, the auditor of Kookmin Bank. Samil has been mandated to pay an additional contribution to the Collective Loss Compensation Fund managed by the Korea Institute of Certified Public Accountants. The accounting firm will be banned from future audits of Kookmin Bank for the next two years. Additionally, the SFC has charged Samil with penalty points for negligent auditing. The two Samil Accounting Corporation accountants responsible for the accounting irregularities will be restricted from conducting audits for one year.The SFC has reported that Kookmin Bank failed to comply with the Korean standards of accounting in the following three cases:• The first case involves the bank's accounting practices in regard to its September 2003 merger with Kookmin Credit Card Company. Kookmin Bank set aside an additional KRW 1.6564 trillion in loan-loss provisions on behalf of its credit card unit. These provisions should have been taken instead by the credit card unit. Although this particular accounting practice may not materially affect the bank's consolidated financial statements based on US g
Attachment 1
Jul 26, 2004

Domestic Banks’ Net Income for the First Half of 2004 Comes to KRW3,587.5 Billion

Preliminary figures show that domestic banks’ net income for the first half of the year totaled KRW3,587.5 billion, the largest first-half net income ever reported by domestic banks and a sharp rebound from KRW733.5 billion a year earlier. All the banks reported positive net income for the period. A large jump in net interest income from increased lending, no new large loan losses, service revenues from bancassurance, investment holding gains from the subsidiary units, and gains from securities investments are said to have contributed to the turnaround in net income for the first half of the year.* Please refer to the attached PDF for details.
Attachment 1
Jun 09, 2004

BIS Capital Adequacy Ratio of Domestic Banks: March 2004

The BIS capital adequacy ratio of domestic banks as of the end of March this year averaged 11.49%, up from 11.20% at the end of 2003 and the highest since the first quarter of 2002. Bank capital grew by 4.9% and risk-weighted assets by 2.3% during the first quarter. Bank capital was pushed up by a 2.7 trillion won increase in core capital (including 1.7 trillion won in net income and 200 billion won in newly issued Tier-1 hybrid- bond securities) while risk-weighted assets rose modestly as the pace of lending to consumers and to small- and medium-sized companies slowed during the quarter.* Please refer to the attached PDF for details.
Attachment 1
Mar 10, 2004

Bank Loans Classified as Substandard or Below Rise Modestly in 2003

Figures compiled by the FSS show that bank loans classified as substandard or below (SBLs)—substandard, doubtful, or presumed loss—totaled 18.6 trillion won at the end of 2003, up 3.5 trillion won from 15.1 trillion won a year earlier. New SBLs during 2003 totaled 35.2 trillion won, compared with 31.7 trillion won for SBLs that have been resolved or otherwise cleaned up during the year. The ratio of SBLs to the total outstanding loans rose to 2.62% from 2.33% a year earlier. The ratio for non-performing loans was 1.98% for 2003.A breakdown of the SBLs shows that SBLs from corporate borrowers totaled 11.7 trillion won (2.69%), compared with 4.3 trillion won (1.74%) for household SBLs and 2.6 trillion won (10.09%) for credit card SBLs.During 2003, domestic banks resolved or otherwise cleaned up SBLs totaling 31.7 trillion won—11.4 trillion won during the first half of the year and 20.3 trillion won in the second half. Loan write-offs came to 11.2 trillion won or 35.5% of the 31.7 trillion total in 2003, compared with 7.8 trillion won (38.5%) in 2002.As of the end of 2003, Chohung and Kookmin were the only domestic banks whose SBL ratio exceeded 3%. The SBL ratio for nine banks rose while that for eight banks fell in 2003 (see the attached table for the complete list of the banks and their ratios for 2003). The FSS expects all domestic banks to be able to hold their SBL ratio below 3% for 2004 and plans to take supervisory actions to encourage banks to do so.* Please refer to the attached PDF for details.
Attachment 1