Bank household loans increased by only 3 trillion won in November compared to the previous month. It seems that the rapid increase in loans has been slowing down since the outbreak of COVID-19.
This is attributed to the slowdown in demand for housing transaction-related funds due to the Bank of Korea’s increase in the base rate and continuous regulations by the financial authorities, and the decrease in the handling of group loans by each bank.
According to the Bank of Korea on the 8th, the balance of household loans by banks as of the end of November stood at 1060.9 trillion won, up 3 trillion won from the previous month.
Considering that the increase in September and October was 6.4 trillion won and 5.4 trillion won, respectively, the amount of increase decreased for two consecutive months.
This trend is largely attributable to the sharp decline in the growth of mortgage loans. The balance of the subsidy loan increased by only 2.4 trillion won in November, and halved to the level of 4.7 trillion won, which was the increase in October. As of the end of November, the balance of the main loan including the Jeonse loan was 776.9 trillion won.
According to the Bank of Korea, the scale of increase in subsidy loans has been reduced due to a decrease in housing sales volume, a slowdown in housing-related money demand, and a decrease in the handling of group loans.
Banks’ Jeonse loans increased by 2 trillion won, similar to the previous month’s 2.2 trillion won. However, the increase in other loans such as credit loans and negative bankbooks stood at 500 billion won, similar to the previous month.
Other loans continued to grow at a low rate from the previous month due to the influence of banks’ management of credit loans and higher loan interest rates.
While the growth of household loans has slowed, the growth of corporate loans is still high. Last month, the increase amounted to 9.1 trillion won, a slight decrease compared to 10.3 trillion won in October, but there is still a lot.
Loans to SMEs increased by 6.4 trillion won, a decrease from the 8 trillion won in the previous month. In addition, loans to large corporations increased by 2.8 trillion won due to large-scale borrowings for equity investment by some companies.
Bank receipts increased by 18.2 trillion won last month, which is due to the increase in deposits of settlement funds by companies and 9.8 trillion won in frequent deposits and withdrawals.
KTB yields fell sharply due to concerns about the re-proliferation of COVID-19 amid concerns over global inflation and the decline in interest rates on government bonds in major countries. However, the BOK explained that the 3-year bond is rebounding amid concerns that the US Federal Reserve will normalize monetary policy sooner than expected in December.
Park Seong-jin, Deputy Head of the Bank of Korea Market Team, said, “The growth rate of household loans has slowed as the size of bank household loans declined for two consecutive months in October and November. It is necessary to observe a little more to judge that the increase has been slowed down because of the
Please enable Javascript to write comments in the library.
