August: Five Major Banks' 'Regular Savings and Time Deposits' Increase by 18 Trillion Won... Impact of Interest Rate Hike

Household Loans Decline for 8 Consecutive Months as Loan Interest Rates Rise

[Asia Economy Reporter Sim Nayoung] Last month, the time deposits and installment savings of the five major commercial banks (KB, Shinhan, Hana, Woori, NH Nonghyup) increased by approximately 18 trillion won. This phenomenon occurred as deposit interest rates surged due to consecutive base rate hikes. As loan interest rates also rose, increasing interest burdens, household loans decreased for the eighth consecutive month.

According to the five major banks on the 1st, the balance of time deposits stood at 729.8206 trillion won as of the end of August, increasing by 17.3715 trillion won since the end of July. Installment savings also rose from 38.1167 trillion won to 38.7228 trillion won during the same period, an increase of 606.1 billion won. In total, time deposits and installment savings grew by 17.9776 trillion won in just one month.

Demand deposits, which serve as standby funds, decreased by 13.6794 trillion won from 673.3602 trillion won to 659.6808 trillion won. Household loan balances also declined by 985.8 billion won from 697.4367 trillion won to 696.4509 trillion won, marking the eighth consecutive month of contraction since January this year.

Mortgage loans increased by 621.9 billion won, but unsecured loans decreased by 1.2117 trillion won. Meanwhile, corporate loans rose to 687.4271 trillion won as of the end of August. Loans to small and medium enterprises amounted to 590.678 trillion won, and loans to large corporations reached 96.7491 trillion won, increasing by 5.7595 trillion won in one month.

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