Busan Bank also prevents transfers
BNK Kyongnam Bank will suspend new loans for some housing mortgage loans and Jeonse loan until the end of this year. Busan Bank also decided to block the exchange of new loans (replacement loans). Local banks, following commercial banks and internet-only banks, are also joining the ranks of ‘loan tightening’ under the pressure of the financial authorities to manage all-round loans.
According to the financial industry on the 13th, BNK Kyongnam Bank stopped accepting new mortgage loans and jeonse loans, such as ‘House-to-House Relief Loan’ and ‘House-to-Door Help Loan 2’ from the previous day. Credit loans to public officials, teachers, and office workers have also been suspended. An official from Kyongnam Bank said, “In order to manage the total amount of household loans, new loans for many products will be suspended by the end of this year.”
However, loans for end-users and low/medium credit will continue. New loans such as youth jeonse funds, bogeumjari loans, and stepping stone loans provided through agreements with local governments and the Korea Housing Finance Corporation will not be stopped. Busan Bank of the same BNK Financial Group also stopped switching new loans between mortgage loans and jeonse loans from the previous day. These measures are in response to the government’s order for strict loan management for some regional banks with a high rate of household loan growth. As of the end of June, Kyongnam Bank and Busan Bank’s loan growth rates reached 11.8% and 9.9%, respectively.
By Shin Ji-hwan, staff reporter jhshin93@donga.com
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