Nonghyup Bank asks Shinhan Bank to share the balance of the apartment loan

NH Nonghyup Bank, which is restricting loans due to regulations on the total amount of household loans, requested Shinhan Bank to lend the balance of some apartment business units. Nonghyup Bank plans to focus on managing the total amount of loans by the end of the year, such as reducing the credit limit and suspending loan transfers (replacement loans).

According to the banking industry on the 31st, Nonghyup Bank recently requested Shinhan Bank to share some of the remaining loans at the apartment business with which it signed an agreement. Nonghyup Bank, which had insufficient loan capacity due to exhaustion of the total household loan limit, requested support from Shinhan Bank, which has relatively little money, as the financial authorities and the banking sector agreed in the ‘Task Force for Inspection of Residential Businesses’. As of last month, Nonghyup Bank’s increase in household loans this year stood at 7% and Shinhan Bank’s 4%.

The financial authorities and the banking sector decided to share the remaining loan handling status of 110 apartment business sites that are scheduled to move in by the end of this year and the loan capacity of each bank through the task force. It was decided to jointly support the loan so that the remaining loans are blocked and the contractors cannot move in.

Nonghyup Bank plans to focus on restoring loan capacity. From November 1 to December 31, the limit of credit loans and negative bankbooks from 100 million won and 50 million won, respectively, will be lowered to 20 million won. Also, during the same period, it was decided to induce early repayment by suspending all household loans except for policy financial products and exempting the mid-term repayment fee in full. Reporter Shin Ji-hwan jhshin93@donga.com