Hana Bank Temporarily Suspends Some Credit Loans and Mortgage Refinancing Loans

[Asia Economy Reporter Kiho Sung] Hana Bank has temporarily suspended new refinancing loan applications for some credit loans and mortgage loan products.

According to the banking sector on the 6th, Hana Bank stopped accepting new refinancing loan applications for two products, 'Hana OneQ Credit Loan' and 'Hana OneQ Apartment Loan,' starting from 6 p.m. the previous day. The suspension applies to 'Hana OneQ Credit Loan' and 'Hana OneQ Apartment Loan,' and no date has been specified for the resumption of sales.

This measure is taken in consideration of the financial authorities' annual household loan volume regulation. In particular, refinancing loans are of concern due to the "balloon effect," as many customers transfer from other banks.

The target household loan growth rate recommended by the financial authorities to commercial banks is 5 to 6%. As of the end of last month compared to the end of last year, the household loan growth rate of the five major banks is 4.88%. The growth rates are 7.29% for NH Nonghyup Bank, 4.90% for KB Kookmin Bank, 4.05% for Woori Bank, and 3.02% for Shinhan Bank, respectively. Banks exceeding 5% are subject to strict management. Hana Bank's household loan growth rate as of last month was 5.19%, close to the target.

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