Banks urged to improve consumer welfare, avoid excessive lending

The head of the Financial Supervisory Service urged banks and other financial institutions Tuesday to improve consumer welfare and avoid excessive lending.

Choe Heung-sik, governor of the FSS, made the remarks earlier in the day during a meeting with representatives from banking and other financial industry lobby groups, the FSS said in a statement. 

During the meeting, Choe said some banks and financial institutions are still selling products to consumers with "wrong information."

Rather than selling products that can help consumers, some banks and financial institutions focus on irresponsible sales of products for profit, Choe said.

Last week, the FSS said it will seek to lower interest rates for margin trading and enable more people to pay their insurance fees with credit cards.

The plan is part of the government's efforts to enhance the protection for consumers of financial products. (Yonhap)