Five Major Banks See Household Loans Decline for Four Consecutive Months Amid Base Rate Hike Impact

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-seop] The outstanding balance of household loans at major domestic banks has decreased for four consecutive months. This is due to the base interest rate being raised twice this year, along with additional pressure for further hikes.

According to data from the five major banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?on the 2nd, the outstanding balance of household loans was recorded at 702.3917 trillion won. This is a decrease of 80.2 billion won from 703.1937 trillion won at the end of last month. The downward trend in household loans has continued since January last year, when it decreased by 1.3634 trillion won.

The overall banking sector is expected to show a similar trend. The total outstanding household loans at domestic banks have been declining every month since December last year. If it decreases this time as well, it will mark five consecutive months of decline. This is the first time since statistics began being compiled in October 2003.

Mortgage loans increased by 4.794 billion won from the previous month to 23.323 trillion won, and jeonse deposit loans also rose by 5.382 billion won to 131.8731 trillion won. Credit loan balances have decreased for five consecutive months, recording 132.4606 trillion won.

On the deposit side, balances increased mainly in savings and time deposits. The balance of time deposits rose by 11.536 billion won to 660.6399 trillion won, marking an upward trend after three months. In the case of installment savings, it increased by 8.055 billion won to 35.9591 trillion won.

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