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[Alpha Biz=(Chicago) Reporter Paul Lee] Following NH Nonghyup and Hana Bank, KB Kookmin and Shinhan Bank have also decided to stop selling ELS products.
Kookmin Bank announced on the 30th that it will stop selling ELS products after an internal meeting. "We considered the growing volatility in the global financial market," a bank official said. "We will decide whether to resume sales by comprehensively considering market stability and consumer options in the future."
Shinhan Bank also held a non-deposit product committee on the same day and decided not to handle ELS (ELT, ELF) from the 5th of next month. "As major stock indexes such as Standard & Poor's 500 and Nikkei 225, which are mainly included as the underlying assets of the Stock-Linked Trust (ELT) and Equity-Linked Fund (ELF), have reached their highest point in the past 10 years, active management is needed to protect financial consumers," a Shinhan Bank official said.
Hana Bank also said it will temporarily suspend sales of ELS products the previous day. Nonghyup Bank is the first bank to stop selling all ELS products except principal-guaranteed derivatives (ELB) since October last year.
Woori Bank, which has relatively small ELS sales and losses, said it will continue to sell ELSs to protect financial consumer options. When the financial authorities come up with measures to improve ELS, they plan to overhaul their sales policies accordingly.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
