Commercial Banks' Household Loans Increased by 364.9 Billion KRW Last Month... 5.8% Growth Rate Last Year

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Amid strengthened management of household loans in the banking sector and rising loan interest rates, household loans at the five major banks increased by only 364.9 billion KRW last month. At the same time, it was reported that the total volume management '6% rule' requested by financial authorities was observed.

According to the banking sector on the 3rd, the outstanding household loans at the five major banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?stood at 709.0529 trillion KRW as of the end of last month. This is an increase of only 364.9 billion KRW compared to 708.688 trillion KRW in November. In November, the increase was 2.3621 trillion KRW compared to the previous month. Except for the decrease in May last year, this is the smallest increase.

The outstanding balance of mortgage loans (Judaemdae) was 505.4046 trillion KRW, an increase of 2.0761 trillion KRW compared to the previous month. Considering that it increased by 2.1122 trillion KRW in the previous month, this indicates a stable growth trend. Jeonse deposit loans stood at 129.6969 trillion KRW, increasing by 1.1835 trillion KRW compared to the previous month, showing a trend similar to the previous month.

Credit loans, which turned to a decline in October after five months, stood at 139.5572 trillion KRW, a decrease of 1.5766 trillion KRW. In November, it was recorded at 141.1338 trillion KRW, an increase of 300 billion KRW.

As the growth rate of household loans significantly slowed last month, the year-on-year growth rate of commercial banks was 5.8%. This is lower than the '6% rule' ordered by financial authorities.

The reason household loans did not increase significantly and the growth trend slowed is that the banking sector is strengthening household loan management and adjusting the pace. Additionally, there is an interpretation that concerns about increased interest burdens during the base interest rate hike period are also at play.

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