Domestic Bank Loan Delinquency Rate at 0.27%... Up 0.02%p from Previous Month

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[Asia Economy Reporter Bu Aeri] At the end of November last year, the delinquency rate on won-denominated loans by domestic banks recorded 0.27%.

According to the Financial Supervisory Service on the 19th, this is an increase of 0.02 percentage points compared to the previous month and 0.01 percentage points compared to the previous year (rounded figures).

Looking at the delinquency rate for corporate loans, it was 0.29%, up 0.03 percentage points from the previous month and down 0.03 percentage points from the previous year.

The Financial Supervisory Service stated that the delinquency rate for large corporations was 0.07%, similar to the previous month. It fell 0.17 percentage points compared to the previous year.

The delinquency rate for small and medium-sized enterprise loans rose 0.03 percentage points from the previous month to 0.34%.

The delinquency rate for household loans was 0.24%, up 0.02 percentage points from the previous month and 0.06 percentage points from the previous year.

Looking more closely at household loans, the delinquency rate for mortgage loans was 0.14%, up 0.01 percentage points from the previous month and 0.04 percentage points from the previous year.

The delinquency rate excluding mortgage loans, such as unsecured loans, was 0.49%, up 0.06 percentage points from the previous month and 0.13 percentage points from the previous year.

The Financial Supervisory Service said, "The delinquency rate on won-denominated loans by domestic banks has been steadily declining since 2019, but recently showed a slight increase centered on household credit loans. Although it is still evaluated as a favorable level, it is necessary to proactively prepare for the possibility of expanded credit losses due to worsening domestic and external economic conditions."

The Financial Supervisory Service added that it plans to continuously encourage banks to strengthen their loss absorption capacity, such as by inducing the accumulation of loan loss provisions.

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