[TV서울=이현숙 기자] Although there are about three months left until the end of the year, the growth rate of household loans by major commercial banks this year has already reached the 5% target set at the beginning of the year.
Accordingly, following NH Nonghyup, other banks are likely to close some loan windows one after another by the end of the year.
In the midst of this, the financial authorities have variously mentioned the target for this year’s household loan growth rate as ‘5-6%’ and ‘6%’, and banks are confused about which standard to manage the total loan volume.
◇ 3 months left… Increase rate 4.97%, Jeonse loan 15.7%↑
According to the financial industry on the 10th, the household loan balance of the five major commercial banks, KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup as of the 7th was 703.4416 trillion won.
This is a 4.97% increase compared to the end of December last year (670,153.9 billion won). This means that it has reached the lower end of the growth rate target (5-6%) set by the authorities at the beginning of the year.
Looking at the growth rate by bank, NH Nonghyup (7.14%, 1263,322 billion → 13,35,581 billion) had the highest growth rate, followed by Hana Bank (5.23%, 1253,351.1 billion → 13,911 trillion won). followed
KB Kookmin Bank (5.06%), the No. 1 household lender, also climbed 0.16 percentage points to exceed 5% after a week of 4.90% at the end of last month.
Woori Bank (4.24%, 1303528 trillion won → 1358842 billion won) is also expected to enter the 5% level at the end of this month or next month if the trend continues.
However, in the case of Shinhan Bank (3.16%, 1226 trillion won → 130247.6 billion won), there is still some room to spare.
By household loan type, this year, the 5 largest banks’ home mortgage loans (including jeonse loans) accounted for 5.09% (473,784.9 billion → 49,789 trillion won) and 10.14% (117.5,13 trillion won) of credit loans. billion → 1294 trillion won)
In particular, the loan for Jeonse funds jumped 15.68% from 105.212 trillion won to 121.7112 trillion won in nine months.
This means that about half (16,498.5 billion, 49.56%) of household loans that have increased this year (332,877 billion won) are loans from Jeonse funds.
|Trends in household loan balances at the top 5 banks (Unit: KRW 100 million, %)
※ Collecting data from each bank
|end of December 2020||October 7, 2021||rate of increase|
◇ Banks “Loan increase inevitably due to jump in house prices… To meet the target, only stop”
As the growth of household loans is not easily dampened, banks are increasingly raising their lending thresholds. Earlier, on the 29th of last month, KB Kookmin Bank significantly reduced the limits of housing mortgage loans and group loans all at once by limiting the loan for Jeonse funds to ‘within the range of the increase in the rental deposit (jeonset value)’.
However, when the growth rate eventually exceeded 5%, from this month, the loan limit was set for each branch and tightened household loans.
The maximum amount that can be borrowed within a month for each branch is set, and if it exceeds even a little, the branch’s household loan is suspended regardless of the beginning of the month. Starting from the 15th, Hana Bank, like KB Kookmin Bank, decided to lend only as much as the price of Jeonse increases.
However, in the financial sector, if the pace of household loans does not slow down enough despite these measures, there is a forecast that banks will suspend new household loans one after another by the end of the year.
An official from a commercial bank said, “With the rise in house prices and jeonse prices, the demand for mortgage loans and jeonse loans will basically continue to increase.” Due to the high demand, they will competitively reduce loans and eventually have no choice but to temporarily suspend household loans.”
NH Nonghyup Bank has already blocked new mortgage loans, including loans for cheonsei funds, since August 24, and although it is not a bank, the Suhyup Federation of Mutual Finance also stopped new household loans for all members and non-members from this month.
In the case of Toss Bank, which was launched on the 5th, there are even speculations that the balance of household loans has already reached half of the maximum household loan limit (500 billion won) proposed by the authorities this year, and that it will close the loan door soon.
|Trends by type of household loan at the top 5 banks (Unit: KRW 100 million, %)
※ Total bank data
|end of December 2020||October 07, 2021||rate of increase|
◇ Authorities “The growth rate has risen to around 6%”… Bank “Is it okay to increase to 7%?”
In the financial sector, there are also voices that the government’s goal to manage the total amount of household loans is not clear, adding to confusion.
Koh Seung-beom, chairman of the Financial Services Commission, said on the 6th, “We will continue our efforts to keep the growth rate of household debt at the 6% level so that it does not act as a risk factor for the economy and finance.”
However, in April, the FSC announced a ‘household debt management plan’ to lower the growth rate of household debt to the 5-6% range this year and 4% next year.
A commercial bank official said, “At the beginning of this year, the credit department submitted a plan to manage the total amount in line with the 5% growth rate guideline presented by the authorities. Not only that, but the credit department has never received any guidance from the authorities that it has been raised to the 6% level.”
Regarding this, an official from the financial authorities said, “5 to 6% was the ratio initially set when setting the target for total volume management earlier this year. “The financial institutions will know their management goals,” he said.
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