Deposits and Savings at 5 Major Banks Increase by 20 Trillion Won... Household Loans Decline for 5 Consecutive Months

[Asia Economy Reporter Bu Aeri] As bank fixed deposit interest rates rise, nearly 20 trillion won has flowed into savings and deposits. Household loans have shown a decline for five consecutive months.

The balance of fixed savings and deposits at the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) was recorded at 716.5365 trillion won as of the 31st of last month. This is an increase of 19.9375 trillion won compared to the end of April. It increased by 26.4999 trillion won compared to the end of last year. The fixed deposit balance was 679.7768 trillion won, and the fixed savings balance was 36.7597 trillion won.

The influx of money into banks is analyzed to be due to the interest rate hike. The Bank of Korea raised the interest rate to 1.75% annually this year. In line with the base rate hike, commercial banks also raised deposit interest rates by up to 0.4 percentage points.

The household loan balance at the five major commercial banks was 701.0615 trillion won, down 1.3302 trillion won from the end of last month. Household loan balances have been declining for five consecutive months this year.

Credit loans decreased by 661.3 billion won to 131.7993 trillion won, and mortgage loan balances decreased by 524.5 billion won to 506.6723 trillion won compared to the previous month. Jeonse deposit loans increased by 585.1 billion won to 132.4582 trillion won.

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