After the FSC suspended operations of Busan-based mutual savings banks, there have been constant inquiries regarding the relationship between Busan Bank and Busan Savings Bank including its affiliates simply due to the similarities between their names. 

And thus we would like to clarify that Busan Bank has no connection whatsoever to any mutual savings banks in Busan. Furthermore, there has been no discussion with the FSC to take over any mutual savings banks including the suspended ones.

Busan Savings Bank and its affiliates were suspended due to capital shortages triggered by mounting insolvent construction project financing (PF) loans. As most of their construction locations are concentrated in the Seoul Metropolitan Area, the impact on Busan economy is reportedly limited and minor. 

As widely known, Busan Bank’s PF loan is the smallest in balance and the NPL ratio is the lowest with a level of 1.29% as of the end of 2010. Busan Bank, as a financial representative of dynamic Busan Metropolitan City, will aid those who are suffering from the suspension to secure liquidity on a guarantee of the Korea Deposit Insurance Corp.