1. Reason for proposal
It is intended to prescribe details of regulation of credit limit and regulation of liquidity ratio in each business type in the management soundness standard of Enforcement Decree of Credit Unions Act which is in the process of revision for strengthening of soundness of mutual finance business territory.
2. Main content
A. Details of regulation of credit limit and regulation of liquidity ratio in each business type are established in management soundness standard (Article 12 and Article 16-8 of draft).
It is intended to limit the credit limit for each business type to 30% in case of real estate business of individual business or corporation business and construction industry, respectively, to limit the total to 50% of total loan, and to maintain liquidity ratio, i.e. the ratio of liquid assets in liquid liability, at 100% at least.