A report by South Korea's state auditor that households and companies had been burdened with unnecessarily high interest payments is the latest in a series of blows to the reputation of the country's banks and its financial regulator, which the auditor said failed to closely scrutinize lenders.
It echoes the rate fixing scandal that erupted in the U.K. in which major banks are alleged to have manipulated a global benchmark lending rate to boost profits from their own trading of financial products linked to interest rates. That has sparked investigations around the world into the setting of other benchmark lending rates.
A report by South Korea's state auditor that households and companies had been burdened with unnecessarily high interest payments is the latest in a series of blows to the reputation of the country's banks and its financial regulator, which the auditor said failed to closely scrutinize lenders.
ReplyDeleteIt echoes the rate fixing scandal that erupted in the U.K. in which major banks are alleged to have manipulated a global benchmark lending rate to boost profits from their own trading of financial products linked to interest rates. That has sparked investigations around the world into the setting of other benchmark lending rates.