Financial Authorities Urge Banks to Strengthen Management of High-Value Credit Loans

"Continued Financial Support for Small Business Owners and Others"

Dokyu-sang, Vice Chairman of the Financial Services Commission

[Asia Economy Reporter Kim Hyo-jin] Financial authorities have instructed banks to manage the surge in credit loans, which has shown signs of rapid increase again since the beginning of the new year.

Do Gyu-sang, Vice Chairman of the Financial Services Commission, mentioned this during a video-hosted Financial Risk Response Team meeting on the 12th.

He said, "We ask banks to strengthen special management of high-value credit loans that have recently surged, especially loans that are difficult to view as emergency living or business funds."

Vice Chairman Do emphasized, "We will make every effort to manage the increase in credit loans by closely monitoring whether credit loan funds are concentrated in specific asset markets and strengthening bank management accordingly."

As of the 8th of this month, over five business days, the outstanding balance of credit loans at the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?was found to have increased by 217.9 billion KRW compared to the end of last year.

Vice Chairman Do evaluated, "Compared to the same business days at the beginning of the month in the second half of last year when credit loans surged, the situation (this year) is still relatively stable."

He also revealed the plan to "continue providing financial support to small business owners and SMEs, as difficulties are likely to persist mainly in vulnerable sectors due to the impact of COVID-19 and other factors."

Financial authorities are considering extending once again the loan maturity extension and interest payment deferral measures for small business owners and SMEs, which have been extended once and are currently in effect until March.

Since February last year until the 8th of this month, financial authorities have aggregated that a total of approximately 413,000 cases and 126 trillion KRW worth of loan maturity extensions have been made through policy financial institutions, commercial banks, and secondary financial sectors.

This content was produced with the assistance of AI translation services.