5Monthly household loans 9trillion won increase, banks tighten credit lending
5Monthly household loans increased by more than 9trillion won in a single month. Banks are responding by tightening regulations, including reducing credit loan limits and raising interest rates, while regular deposit rates have entered the 3% range.
5Monthly household loans increased by more than 9trillion won in a single month. The fact that individuals’ borrowing has increased is an issue that must be immediately checked from the perspectives of investor fund flows and financial stability.
6Household loans at commercial banks increased by 2trillion 8,000billion won during the month. Over the same period, credit loans increased by 1trillion 6,000billion won.
Banks are expanding credit loan regulations across the board. Reducing loan limits and raising interest rates are representative measures.
Shinhan and Hana have limited credit loan limits. Woori Bank has suspended its credit loan switching service on loan comparison platforms.
Time deposit rates have entered the % range. 3Banks are making every effort to attract corporate funds.
Some banks have tightened their credit loan screening criteria and reduced preferential interest rates. Loan application requirements are becoming more stringent.
Foreigners’ stock selling and individuals’ increased use of credit loans emerged during the same period. The simultaneous observation of the two trends shows the pattern of fund movements.
Detailed measures are being announced in disclosures related to various banks and financial products. It is time to check disclosures by bank and product terms and conditions.