Seoul: South Korean banks are urged to do more for better governance and internal control, although they have taken big strides in doing so, the country's financial watchdog said Tuesday.
According to Yonhap News Agency, the Financial Supervisory Service (FSS) highlighted that local banks have developed transparent and systematic approaches for selecting future leaders and have introduced various tools to evaluate management performance.
The banks have also implemented measures to strengthen the independent roles of outside directors and have improved their communication channels with these directors to address issues such as financial accidents and the improper sale of financial products.
Despite these efforts, the financial watchdog emphasized the necessity for banks to take additional steps to establish comprehensive schemes for a smooth and transparent succession process, verify the eligibility for extended tenures, and adopt more stringent assessment tools for evaluating their chief executives.