5monthly household loans9Banks cut credit limits as household loans surge by trillion won
5Household loans rose by more than trillion won in a month, prompting commercial banks to reduce credit loan limits and tighten screening. Continued expansion of individual leverage could have an immediate impact on the stock market and household debt.9Household loans rose by more than trillion won in a month, prompting commercial banks to reduce credit loan limits and tighten screening. Continued expansion of individual leverage could have an immediate impact on the stock market and household debt.
5Household loans surged by more than trillion won in a month, and banks have begun tightening regulations on credit loans. The expansion of individual leverage could affect stock market volatility and household debt risks, making it an important trend for investors.9Household loans surged by more than trillion won in a month, and banks have begun tightening regulations on credit loans. The expansion of individual leverage could affect stock market volatility and household debt risks, making it an important trend for investors.
6Since the start of the month, household loans at commercial banks have already increased by trillion won, while credit loans rose by trillion won. Demand for short-term funds has been growing rapidly.2.8Since the start of the month, household loans at commercial banks have already increased by trillion won, while credit loans rose by trillion won. Demand for short-term funds has been growing rapidly.1.6Since the start of the month, household loans at commercial banks have already increased by trillion won, while credit loans rose by trillion won. Demand for short-term funds has been growing rapidly.
Shinhan Bank announced that it will limit non-face-to-face credit loan limits from 6monthly 15and reduce limits by up to 20% when extending the maturity of overdraft accounts. The screening criteria and the way limits are applied will also change.
Other major banks, including Hana Bank, have also introduced measures to reduce lending limits, adjust interest rates, and strengthen remote screening. Woori Bank has suspended switching to credit loans through loan comparison platforms.
The banking sector explained that it is adjusting credit-loan operations across the board because of the increase in debt-financed investing. The related measures have either taken effect immediately or are scheduled to take effect soon.
Recently, transactions have been observed in which individual investors used credit to absorb shares sold by foreign investors in some stocks. Individuals’ leveraged buying can amplify short-term fluctuations in certain stocks.
The banks’ measures are expected to change the way credit loans are supplied and marketed in the short term. The already announced reductions in lending limits and strengthened screening are the key facts at this stage.