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Nonghyup Bank Calls Finance Spinoff `Premature`

Posted September. 11, 2009 00:56,   


The National Agriculture Cooperative Federation, or Nonghyup Bank, said yesterday that a recent internal meeting concurred that it is premature to spin off the mutual finance function of the bank.

This runs counter to a reform bill proposed by the federation`s reform committee that the government assembled with private experts to push for reform.

Nonghyup`s Central Committee on Business Structure Reform, which is in charge of reforming the bank, held its second meeting at Nonghyup headquarters Tuesday.

The committee stressed the importance of self-regulated reform plans and urged government preparation of institutions designed to support the reform, and a more cautious approach to the separation of credit and business operations.

On the reform plan, a source from the Food, Agriculture and Fisheries Ministry said, “Since Nonghyup has not finalized its own plan, we will refer to its suggestion in devising reform as scheduled.”

“If the government is to draft a plan by the end of the year as scheduled, Nonghyup must come up with its own plan by the end of October.”