SEOUL - THE Financial Services Commission suspended operations of four savings banks on Saturday, following its similar sanction against three debt-saddled players since January.
The regulator announced that it halted businesses of Busan II Savings Bank, Jungang Busan Savings Bank, Jeonju Savings Bank and Bohae Savings Bank for six months until Aug 18.
The series of measures against distressed savings banks come as part of financial regulators ongoing restructuring of the secondary banking sector hit by toxic construction debt.
Like the three -- Samhwa, Busan and Daejeon savings banks -- which were earlier subject to business suspension, the four banks have also faced cash flow crisis, the FSC said in a statement.
'Though liquidity status of the four banks was better than that of Busan and Daejeon savings banks, they saw a huge number of customers withdraw their deposits (amid recent woes in the savings banking sector),' the FSC said.
Last Thursday, the regulator suspended operations of Busan Savings Bank, the No. 1 in the industry in assets, and its subsidiary Daejeon Savings Bank for six months until Aug 16. -- KOREAN HERALD/ANN
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