This week's risk management news includes Germany's new central bank head, FSS'extended suspension of seven savings banks, and BI's directive to banks to stop recruiting new wealth customers.
May 04, 2011 | The Asian Banker Editor
Germany appoints new central bank head
Germany has appointed Dr Jens Weidmann as the new president of Deutsche Bundesbank, the country’s central bank, for an eight-year term starting on May 1st 2011. He replaces Professor Axel Weber who has resigned. Dr Weidmann, who was previously a division head at the Federal Chancellery, previously worked at the French national bank and the International Monetary Fund.
Korea’s FSS extends suspension of seven savings banks
South Korea’ Financial Services Commission, the country’s financial regulator, has extended the suspension of seven savings banks, namely Busan Savings Bank and four of its subsidiaries, Bohae Mutual Savings & Finance and Domin Mutual Savings Bank. The extension, which is until October 28th 2011, is due to the banks’ continued lack of capital and poor liquidity. The regulator is planning to sell these banks if their financial condition does not improve within 45 days.
Bank Indonesia asks 23 banks to stop recruiting new wealth customers
Bank Indonesia has requested 23 lenders to stop adding new wealth customers starting from May 2nd 2011. The central bank has also directed banks to improve their policies, guidelines and internal supervision to reduce risks and to better protect customers. This directive comes after a bank employee had reportedly embezzled money and a cardholder had died at a local Citigroup branch.
Re-disseminated by The Asian Banker
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Risk And Regulation Working GroupKeywords:Deutsche Bundesbank, FSS, Bank Indonesia