Banks Suspend Non-Face-to-Face Loan Products Amid Household Loan Growth Concerns

The banking sector is taking measures to manage the total amount of household loans, with several banks suspending sales of non-face-to-face loan products.

Industrial Bank of Korea has stopped selling three non-face-to-face loan products since last month to temporarily manage the total amount of household loans.

Woori Bank has also decided to halt handling non-face-to-face mortgage loan products until next month. Additionally, the bank has stopped selling jeonse loan products and reduced the preferential interest rate for each credit loan product by up to 0.5%.

Shinhan Bank plans to temporarily stop selling non-face-to-face loan products starting tomorrow.

The reason behind this move is that many banks have exceeded their annual household loan growth target reported to the financial authorities at the beginning of the year. As a result, banks are taking steps to reduce household loans to meet the annual total management figure.

A commercial bank official stated that further reduction of household loans is necessary to meet the annual total management figure.

Related Topics:

• Household Loans
• Banking Sector
• Non-Face-to-Face Loan Products