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[Apha Biz=(Chicago) Reporter Paul Lee] Daegu Bank, which recently launched an investigation into the illegal opening of customer accounts, was criticized for its lack of internal control by financial authorities just a year ago.
According to the financial sector on the 15th, the Financial Supervisory Service notified Daegu Bank of its management caution in April last year, saying the order leave system was not operating properly. Banks require at least one person to take forced leave for a certain period of time of the year (order leave system) and conduct a special audit of employees subject to ordered leave. However, Daegu Bank did not improve stores that did not introduce an order leave system, and the FSS judged that the system is less effective due to the small portion of the order leave system among key performance indicators (KPI).
In addition, poor internal control of overseas stores was pointed out. Daegu Bank conducts on-site inspections of the internal control and operation status of overseas stores at least once a year and reports the results of the inspections to compliance officers. However, the FSS inspection found that the problem occurred because it did not prepare a procedure to officially notify overseas stores of the results of the inspection and did not check whether they properly implemented the results of the inspection. The Financial Supervisory Service ordered follow-up management procedures to be reflected in the bylaws.
It has also been pointed out several times about the handling of financial consumer protection-related work. In June last year, the Financial Supervisory Service ordered Daegu Bank to improve the "Debate Information on Guarantee Fees Related to Intermediate Payment Loans."
In January this year, the Financial Supervisory Service also found that Daegu Bank violated its obligation to record the process of signing a trust contract for equity-linked securities (ELS). In signing the trust contract, we did not record the process of signing the contract, such as the customer's answer, but only recorded simple noise.
In particular, Daegu Bank has been criticized for relatively many improvements or corrections compared to other banks, including the imposition of institutional fines (19 million won), eight sanctions on executives and employees, two cases of self-handling, 38 cases of improvements and 16 cases of management attention from the Financial Supervisory Service over the past two years.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
