SK FSS Mutual Savings Bank Real Estate

On May 4, SK FSS issued guide on real estate for non-business use.

  • SK FSS issued guidance on mutual savings banks' real estate for non-business use.
  • As there are concerns about profitability and deterioration of liquidity of mutual savings banks due to inflow of non-business real estate and prolonged holding period.
  • Business Standards
  • Mutual savings banks are prohibited from acquiring non-business real estate at an excessively high price, and they are encouraged to conduct a quarterly public sale.
  • If expected recovery value of the non-business real estate is less than book value, the difference shall be recognized as an impairment loss for the non-business real estate.
  • Mutual savings banks with excessive non-business real estate shall have a sales plan.
  • Effectiveness
  • Valid from May 4, 2022 to May 3, 2024.
  • In Mar. 2024, SK FSS proposed to extend guide on real estate retention, see #206484.

Regulators SK FSS
Entity Types Auditor; Bank; CU
Reference Gd 5/4/2022
Functions Accounting; Actuarial and Valuation; Audit; Compliance; Financial; Reporting; Risk; Treasury
Countries South Korea
Products Banking; Corporate
Regions AP
Rule Type Final
Rule Date 5/4/2022
Effective Date 5/3/2024
Rule Id 137176
Linked to Rule :206484
Reg. Last Update 5/4/2022
Report Section International

Last substantive update on 05/09/2022