Breaking Down Barriers: Banks Push for Lending Regulation Exemptions to Empower End Users
Banks Create Exceptions for Genuine Consumers in Lending Regulations
Your own provisions such as job relocation, treatment of illness, parental support, etc.
Banks have started to create exceptions for genuine consumers in lending regulations, a phenomenon that appeared in response to the financial authorities’ contradictory instructions to ‘suppress the growth of household loans but protect genuine consumers.’
According to the financial sector, Shinhan Bank restricts rental deposit loans to single homeowners but allows loans in seven cases, including job relocation, child transfer, treatment of illness, parental support for those over 60, transfer school due to school violence, divorce, and acquisition of rights before sale. In the case of ‘genuine users’, it was decided to lend.
Mortgage loans for the purpose of buying a new home are available when a home purchase contract expires provided the existing home is sold on the ’day’ of execution.
KB Kookmin Bank also took similar measures. Loans were restricted for the purchase of additional homes in the metropolitan area, but were allowed to be made when disposing of an existing home and buying a new home. If a person who intends to marry within six months of the date of execution of the loan buys a house, or if they inherit part of the house or the whole house within two years of the time of the loan application, can be classified as a genuine user.
Woori Bank also decided to make exceptions to loan restrictions for marriage, relocation of work or school to the metropolitan area, etc. Woori Bank previously announced that it would limit the target of rental deposit loans to those without a home in the metropolitan area and stop handling additional home purchase funds for homeowners.
In common, the three banks plan to operate a ‘dedicated organization for genuine consumer review’ to minimize inconvenience to genuine consumers. This is an effort to minimize the damage to actual consumers while maintaining the policy of strengthening regulations.
This move appears to be in response to a request by Financial Supervisory Service Chairman Lee Bok-hyeon to “limit speculative demand lending but carefully manage it so as not to limit actual demand.” At the meeting of the bank presidents, chaired by President Lee, the bank presidents decided to discuss ways of continuous improvement by discovering and sharing review cases related to the distribution of real demand that focuses on the Federation of Banks.
Reporter Park Yu-jin genie@asiae.co.kr
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