The Korea Herald


Local banks show no signs of withdrawal problems: regulator

By Yonhap

Published : March 27, 2023 - 11:29

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South Korea's financial regulator said Monday that local banks showed no signs of abnormality in their withdrawal and deposit operations.

The assessment by the Financial Supervisory Service came amid concerns of a global banking crisis following the recent failures of two US banks -- Silicon Valley Bank and Signature Bank -- and the stock plunge of Deutsche Bank, Germany's largest bank.

Only a small number of customers with deposits exceeding 50 million won ($38,400), the maximum amount of savings guaranteed by the South Korean government, transferred more than 50 million won, the FSS said.

The FSS said that internet-only banks have a low possibility of losing customer funds, as the average deposit amount per person is in the range of 2 million won.

It also said there is no possibility of a bank run in South Korea, noting 98.1 percent of depositors in domestic financial companies had less than 50 million won as of the end of September last year. (Yonhap)