Household Loans at 5 Major Banks Increase by 2.9 Trillion Won in One Month... Impact of Mortgage Loans

Household loans at major commercial banks increased by 2.9 trillion won in one month, marking a nine-month consecutive rise.

The 'Mortgage Refinancing' service through an online, one-stop refinancing infrastructure surpassed 10,000 applicants and approached 1.8 trillion KRW in application amounts within 15 days of its launch. The photo shows an ATM of a commercial bank installed in Yongsan-gu, Seoul, on the 25th. Photo by Kang Jin-hyung aymsdream@

According to the financial sector on the 1st, the outstanding balance of household loans at the five major domestic commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) stood at 695.3143 trillion won at the end of last month, up 2.9049 trillion won from the previous month (692.4094 trillion won). The increase was larger compared to the previous month (2.0238 trillion won).

The increase in household loans was mainly driven by mortgage loans. At the end of last month, the outstanding balance of mortgage loans was 534.3251 trillion won, an increase of 4.4329 trillion won from the previous month. The growth in mortgage loans was also greater than the previous month (3.6699 trillion won).

On the other hand, the outstanding balance of credit loans decreased by 1.0024 trillion won to 105.4611 trillion won compared to the previous month. A financial sector official stated, "Due to high interest rates and economic downturn, credit loans are showing a declining trend," adding, "Mortgage loans are leading the increase in loan growth."

Meanwhile, the five major banks’ time deposits rose by 13.3228 trillion won to 849.2957 trillion won compared to the previous month. Regular savings also increased by 624.4 billion won to 46.4876 trillion won. Demand deposits, however, decreased by 26.036 trillion won to 590.712 trillion won during the same period.

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