Shinhan Bank has successfully secured the operating rights for Incheon Metropolitan City’s No. 1 Treasury again, firmly maintaining its position as the traditional treasury manager for 24 years despite fierce competition. Incheon City recently held a Treasury Designation Review Committee and announced that Shinhan Bank was finally selected as the main operator for the No. 1 Treasury, which manages the general account and the special account for public enterprises. With this selection, Shinhan Bank has been entrusted with the heavy responsibility of stably managing Incheon City’s massive finances for approximately five years, from early next year until the end of 2030. This can be said to be a representative case showing how fierce the defense battles are among financial institutions in the metropolitan area’s public treasury market. In this article, we will take a detailed look at the background and evaluation process of how Shinhan Bank was able to defend Incheon City’s No. 1 Treasury.
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Shinhan Bank Successfully Defends Incheon City’s No. 1 Treasury, Maintaining a 24-Year Lineage of Treasury Management
1. The Protagonist of Defending Incheon City’s No. 1 Treasury
Shinhan Bank succeeded in defending the operating rights for Incheon City’s No. 1 Treasury in a tough competition with Hana Bank. In this treasury designation announcement by Incheon City, Hana Bank also issued a challenge in addition to Shinhan Bank, leading to a battle of pride between the two major banks. In the case of the No. 2 Treasury, Nonghyup Bank participated alone and was finally selected after going through the re-announcement procedure. The review committee was composed of private experts from various fields, such as university professors, lawyers, and certified public accountants, as well as city councilors. They underwent a thorough verification process based on the Ministry of the Interior and Safety’s regulations and related ordinances. As a result, Shinhan Bank earned the highest score based on the trust accumulated over many years and its excellent proposal content. Operating a local government treasury is not only about attracting massive deposits but is also an important measure proving financial influence within the local community. In particular, Incheon City’s No. 1 Treasury is a core channel handling a massive amount of funds exceeding 14 trillion won based on this year’s main budget. This result is significant in that it proved the ability to stably manage such a massive scale of assets. Although Hana Bank also deployed considerable capabilities, it is interpreted that it was insufficient to surpass Shinhan Bank’s long-standing know-how. Financial industry officials evaluate this result not just as a simple contract win, but as the outcome of trust built over a long period.
Shinhan Bank defended Incheon City’s No. 1 Treasury after a fierce competition with Hana Bank, re-proving its ability to manage massive finances exceeding 14 trillion won.
2. A History of 24 Years of Partnership Since 2007
The history of Shinhan Bank managing the treasury in partnership with Incheon City dates back to 2007. It has been responsible for the city’s finances for a long time, close to two decades, without a single major accident. The know-how accumulated through acting as the treasury manager for such a long period served as the strongest weapon in this review as well. From the perspective of local governments, the stability of budget execution and the expertise in managing public funds inevitably become the most important evaluation criteria. The continuity of the existing operator receives high marks in terms of reducing trial and error that may occur when a new bank enters and preventing administrative gaps. From the perspective of general citizens visiting bank branches, it is also convenient in many ways for a familiar financial institution to continue providing services. This is because confusion is reduced in the process of paying taxes, handling various public charges, and receiving local government-related subsidies. Shinhan Bank has operated dedicated counters and specialized products to ensure that Incheon citizens can conduct banking business without inconvenience. These meticulous efforts became the foundation that led to high evaluations from the review committee members. The experience of breathing in sync with the local community over a long period is a precious asset that cannot be converted into money.
Shinhan Bank earned high evaluations based on its 24 years of stable treasury operation experience since 2007.
3. Strict and Transparent Evaluation by the Treasury Designation Review Committee
The process of selecting Incheon City’s treasury this time was not decided simply by looking at the bank’s size but went through a very rigorous procedure. Incheon City’s Treasury Designation Review Committee included a large number of external experts well-versed in the financial field to enhance fairness. The review items consisted of 20 detailed indicators across 6 areas, dissecting every aspect of the bank. Specifically, the domestic and international creditworthiness and financial soundness of the financial institution were verified as the top priority. In addition, the appropriateness of loan and deposit interest rates provided to the city also held significant weight. Furthermore, accessibility and convenience, which show how convenient it is for general citizens to use the bank, were also major review targets. The computer management capabilities to perform treasury business without error and the competence of specialized personnel were also thoroughly checked. Finally, the contribution activities carried out for the local community and the collaborative projects promoted with the city were also reflected in the evaluation. Shinhan Bank obtained uniformly excellent scores in all six of these areas, outpacing its competitors. It has proven that only thorough preparation can win in the face of transparent and objective indicators.
Shinhan Bank obtained the highest scores in 20 detailed items across 6 areas, including creditworthiness, interest rates, citizen convenience, and regional contribution.
4. Massive Budget Scale and Future Schedule
The scale of the funds handled by Incheon City’s No. 1 Treasury, which Shinhan Bank has defended this time, is unimaginably huge. Based on this year’s main budget, the total amount of the general account, special account for public enterprises, and funds managed by the No. 1 Treasury reaches approximately 14.4527 trillion won. The structure is such that most of Incheon City’s finances are executed and managed through Shinhan Bank. Along with this, the scale of the other special accounts handled by Nonghyup Bank, selected as the No. 2 Treasury, also exceeds 2 trillion won. Safely managing such massive public funds is a critical mission that determines the flow of the regional economy. Based on this review result, Incheon City plans to sign a formal agreement for the next city treasury designation next month. Once the agreement is signed, Shinhan Bank will officially act as the treasury manager for five years, from January 1 of next year to December 31, 2030. During this period, it plans to cooperate closely with the city to ensure transparent fund execution and efficient budget management. It is also expected to play a catalytic role in injecting vitality into the regional economy as massive funds are tied up and released. Since the budget is made up of citizens’ precious taxes, it comes with the heavy responsibility of allowing no room for carelessness.
Shinhan Bank will again manage the massive Incheon City No. 1 Treasury budget of over 14 trillion won for five years starting next year.
5. Contribution to the Regional Economy and Future Commitments
Shinhan Bank has shown a strong will to further strengthen its partnership with Incheon City on the occasion of this treasury defense. A bank official stated that it will expand financial benefits that Incheon citizens can feel based on the know-how accumulated so far. It plans to contribute substantively to regional economic growth beyond simply storing funds and handling receipts and payments. It is also considering measures to prepare support policies for small and medium-sized businesses in the Incheon area and to activate special loan products for small and medium enterprises. It aims to establish itself as a bank loved by local residents by faithfully performing the role of public finance. Cooperation between local governments and commercial banks has a significant impact on the construction of infrastructure across the entire local community. Shinhan Bank has actively participated in various public welfare projects of Incheon City, playing the role of a reliable partner in the local community. It plans to maintain this tone for the next five years and contribute to job creation and cultural and artistic support projects. It is committed to taking the lead in creating a virtuous cycle where the bank’s profits are returned to the local community. Such sincere actions will serve as a positive reference in future local government treasury bidding processes.
Shinhan Bank plans to increase the convenience of Incheon citizens and actively contribute to regional economic development based on its stable treasury operation experience.
6. The Significance of the Public Treasury Market and Future Outlook
The result of this battle for Incheon City’s No. 1 Treasury shows how much importance Korean commercial banks place on the public treasury market. Local government treasuries are not only a means to secure massive deposits but also the best marketing tool to enhance brand trust. The ability to stably manage public funds worth trillions of won itself serves as a medal proving the bank’s status. It is expected that the behind-the-scenes competition between banks will become even fiercer every time the major treasuries in the metropolitan area or large cities reach their maturity. Beyond simply offering interest rate conditions, the symbiosis index with the local community will become a key variable determining the outcome. Readers also need to pay attention to how the budgets of large local governments are managed and which financial institutions support them. This is because the flow of public funds is closely connected to daily life, such as the expansion of welfare facilities or road construction in our neighborhoods. We hope that Shinhan Bank will not lose its original intention during its upcoming term and provide even more transparent and friendly financial services. We need the wisdom to grasp the meaning behind economic news around us rather than letting it pass as simple information. We hope that a healthy ecosystem where financial institutions with solid finances and trust coexist and thrive with the region will be established in the future.
The operating rights for local government treasuries are a key battleground for enhancing a bank’s trustworthiness and brand value, so fierce competition is expected to continue.
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