Five Major Banks Continue Decline in Household Loans... 25 Trillion Won Decrease in One Year

Mortgage loans decrease by over 2 trillion won in one month
Jeonse and credit loans decline for 6 consecutive months
Corporate loans rise
Regular savings and installment savings also show an increasing trend

As the real estate market continues to stagnate and loan interest rates remain high, household loans are continuing to decline. Household loans at commercial banks have decreased by nearly 25 trillion won over the past year.

According to the financial sector on the 2nd, the outstanding balance of household loans at the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?was recorded at 677.4691 trillion won at the end of April. This is a decrease of 3.297 trillion won compared to the previous month (680.7661 trillion won) and a decrease of 24.9226 trillion won compared to one year ago. Household loans have been declining for 16 consecutive months since January last year.

The decrease in mortgage loans, which account for the largest portion of household loans, was particularly notable. The outstanding balance of mortgage loans at these banks decreased from 511.232 trillion won at the end of March to 508.9827 trillion won at the end of last month. The decline in mortgage loan balances has been gradually expanding this year: -57.2 billion won in February, -155.37 billion won in March, and -224.93 billion won in April.

The outstanding balance of jeonse deposit loans at the end of April was 124.8792 trillion won, down 1.7346 trillion won from 126.6138 trillion won at the end of March, and the outstanding balance of personal credit loans decreased by 1.0088 trillion won to 109.9314 trillion won in one month. Both jeonse deposit loans and personal credit loans have been declining for six consecutive months since November last year.

On the other hand, corporate loans are on the rise. The outstanding balance of loans to small and medium-sized enterprises, which is the largest loan category, increased by 3.0148 trillion won from 602.3888 trillion won at the end of March to 605.4036 trillion won at the end of last month, while loans to large corporations rose from 112.2861 trillion won to 114.6743 trillion won during the same period.

Time deposits and installment savings at the five major banks turned to an increasing trend last month after a month of decline. The outstanding balance of time deposits increased by 44.43 billion won from 805.3384 trillion won at the end of March to 805.7827 trillion won at the end of last month. Last month, it had decreased by 10.3622 trillion won compared to the previous month. The outstanding balance of installment savings rose by 89.7 billion won from 37.0908 trillion won to 37.9878 trillion won. Last month, it had decreased by 23.12 billion won.

As of the end of April, the balances of demand deposit-type savings (MMDA) and demand deposits were 111.6452 trillion won and 590.9803 trillion won, respectively.

[Image source=Yonhap News]

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