The Financial Supervisory Service has taken administrative action against the Dubai branch of Woori Bank for failing to properly implement the internal guideline 'Risk Management for Overseas Branches.'
According to the financial sector on the 4th, the FSS recently delivered a management warning to the Dubai branch of Woori Bank. The inspection results from the FSS indicated that the branch managed daily monitoring tasks related to the liquidity coverage ratio (LCR) manually using Excel, which could lead to potential errors.
The FSS noted, "A computerized system must be established to manage the LCR stably within regulatory limits," and added that, "Liquidity risk management tasks should also be strengthened, including the computerization of monitoring tasks related to this indicator."
The Dubai branch must prepare a business continuity plan and manual to prepare for unexpected interruptions in accordance with the guidance from the Dubai supervisory authorities. However, the branch has structured its manual based on abstract principles without detailed countermeasures for the business continuity plan.
Moreover, despite renewing the office lease contract within the Dubai International Financial Center, it was revealed that the branch failed to manage the status of usage rights assets separately, leading to the omission of the contract renewal in the settlement of account data.
The FSS emphasized, "The effectiveness of the business continuity plan must be ensured," and stated that, "The relevant work system must be strengthened, including checking for any omissions."