Bank sector household loans in July 10 trillion ↑ for cabin public offering and housing transactions

As of July, all-time high… Mortgage Loans 6.1 trillion ↑ Credit Loans 3.6 trillion ↑

“It will be difficult to slow the growth significantly due to the high demand for housing, public offering stocks, and living funds”

(Seoul = Yonhap News) Reporter Shin Shin-kyung Kim Yu-ah = Household loans increased by nearly 10 trillion won last month as demand for funds related to housing sales and jeonse and investment in public stocks continued.

According to the ‘Financial Market Trends’ released by the Bank of Korea on the 11th, the balance of household loans by banks as of the end of July was 140.2 trillion won, an increase of 9.7 trillion won from the end of June.

Previously, in May, as loans related to subscription to SK IE Technology (SKIET) were repaid, household loans continued to increase for the second month after an unprecedented decrease of 1.6 trillion won.

The increase in household loans in July (9.7 trillion won) was smaller than in April (16.2 trillion won), but larger than in June (6.3 trillion won). The increase in July is the largest since statistics were collected in 2004.

Looking at the increase and decrease in household loans by type, mortgage loans (balance of 758.4 trillion won), including loans for Jeonse funds, surged 6.1 trillion won in one month. The rate of increase was faster than in June (5.1 trillion won). Jeonse loan alone increased by 2.8 trillion won, which also exceeds the increase in June (2.2 trillion won).

Other loans (balance of 280.8 trillion won), which consist mostly of credit loans, also increased by 3.6 trillion won. The increase is more than double that of June (1.3 trillion won).

Park Seong-jin, Deputy Head of Market Team at the BOK Financial Markets Bureau, said, “Individual loans, group loans, and jeonse loan related to housing sales have increased evenly. seen,” he analyzed.

Last month, before the general subscription for public offering shares of Kakao Bank, SD Biosensor, and HK Innoen, credit loans surged and were repaid to a large extent, but some unpaid loans were caught in other loan statistics, the BOK explained.

Regarding the future household loan trend, Deputy Director Park said, “We need to keep an eye on the effects of the DSR (Total Debt Repayment Ratio) regulation that took effect from July, the housing market situation, the intensity of management of the total amount of household debt, and the trend of loan interest rates, etc. “However, it is difficult for the growth of household loans to slow down significantly as there are still many demand for housing sales, demand for jeonse-related funds, other loans for investment in risky assets such as stocks, and demand for living and business funds related to the coronavirus,” he predicted.

According to the ‘Household Loan Trend’ by the Financial Services Commission and the Financial Supervisory Service, total household loans in the financial sector, including banks and secondary financial institutions, also increased by 15.2 trillion won last month. The increase was larger than in June (10.3 trillion won). By loan type, mortgage loans surged 7.5 trillion won due to the expansion of jeonse loans and group loans in the banking sector, and other loans such as credit loans also increased by 7.7 trillion won.

As of the end of July, the outstanding balance of bank loans in Korean won stood at 133.5 trillion won, an increase of 11.3 trillion won from June. The monthly increase more than doubled in June (5.1 trillion won).

Loans to small and medium-sized enterprises increased by 9.1 trillion won in one month, including loans to individual business owners (4.2 trillion won). Financial support from banks and policy financial institutions, as well as demand for funds related to the payment of value-added tax, had an impact. Bank loan balances of large corporations also increased by 2.3 trillion won.

As of the end of July, the outstanding balance of non-loan banks was 232.9 trillion won, an increase of 2.5 trillion won from the end of June.

By type of receipt, 6.5 trillion won was withdrawn from instant deposits, which are short-term funds that are easy to withdraw at any time and use where needed, but time deposits (1.3 trillion won) and bank bonds (2.3 trillion won) surged. The reason for the decrease in frequent deposits and withdrawals was the withdrawal of corporate accounts for the payment of value-added tax.

In the month of July, deposits from asset management companies increased by 30.4 trillion won. In particular, the money market fund (MMF) surged 27.1 trillion won as surplus funds from the national treasury and bank funds flowed again.

In the case of the 3-year and 10-year government bond yields, as of the last 10 days, they stood at 1.43% and 1.92%. Each 0.02 percentage points (p) compared to the end of June. It decreased by 0.17 percentage point.

Deputy Director Park explained, “KTB yields fell mainly on long-term bonds due to the spread of the COVID-19 mutant virus at home and abroad, the decline in US Treasury yields, and the net buying of foreign government bond futures.”

shk999@yna.co.kr, kua@yna.co.kr

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2021/08/11 12:00 Send