Gov't to speed up bank mergers

The government has decided to expedite restructuring of the financial sector and complete mergers of local banks by year-end. It also intends to boost the local construction market by undertaking renovation work on outdated villages and actively pushing a plan to build about 50,000 new rental homes over the next three years.

A high-ranking official of the Finance and Economy Ministry said that economy-related ministers discussed these and other measures aimed at stabilizing financial markets in a year-end meeting held Monday. He expected that individual banks would soon unveil their individual restructuring blueprints, which will include merger plans.

The official said that the Financial Supervisory Service would complete its inspections of 14 mutual savings and financial companies (MSFCs) by the middle of this month. Based on the results, the government will extend support to viable MSFCs while liquidating nonviable ones.