Secondary Financial Sector, Household Loan Growth Target Expected to Be Lowered Next Year

[Asia Economy Reporter Kiho Sung] Financial authorities are expected to lower the target growth rate for household loans in the second financial sector, including savings banks, insurance companies, and credit card companies, compared to this year, to prevent the balloon effect of household loans.

According to the financial sector on the 28th, the Financial Supervisory Service recently presented a guideline for the total household loan growth rate in the second financial sector for next year and reportedly requested the submission of next year's management targets from the end of this month to early next month.

Along with this, it is reported that the growth rate guidelines for next year were presented differentially according to the characteristics and scale of each financial company's sector.

The target growth rate for the mutual finance sector this year was 4.1%, but it is expected to be lower next year. Savings banks had a target of 21.1% this year, but it is reported that they were given a growth rate of 10.8?14.8% depending on the company.

The relevant sectors are reportedly finding it difficult to accept such targets. The reduction in target rates is larger than that of the banking sector, and mid-interest rate loans are included in the total volume regulation.

The insurance industry is reported to have been given a target in the early 4% range, similar to this year. Discussions are also underway with the credit card companies and other credit industries based on a similar growth rate target of 6?7% as this year.

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