Unsecured loans 2trillion surge, retail borrowing spreads again amid KOSPI rally
Over the past month, unsecured loans rose by 2 trillion won. The balance of unsecured loans swelled to its highest level in 2 years and a half, after being curbed by caps on total household lending, and is rising again amid the stock market rally.
Unsecured loans rose by 2 trillion won over the past month. By monthly increase, this was the largest since the outbreak of COVID19. The financial sector compiled and disclosed the figures.
The balance of unsecured loans also rose to its highest level in 2 years and a half. The statistics show both the increase in household loan balances and their level. The aggregation method and included items follow the financial sector's disclosure standards.
Caps on total household lending had previously restrained loan growth. As a result of the regulations, approval criteria and limits for new loans had become stricter. However, the figures show that the recent strong performance of the stock market has pushed up demand for loans.
Even as the upper bound of the policy rate is 6% away from the threshold, growth in consumer credit loans is being observed. The figures show that individuals’ borrowing-funded investments continue to increase despite the higher burden of interest rates. An increase in securities-market trading value and an increase in loans are being observed together.
According to the article, individual investors have turned to investing with consumer credit loans, citing examples of returns from stock investments. The figures reflect an increase in outstanding margin loans concentrated in some accounts. Supervisory authorities and financial institutions are monitoring related trends.
Sources: 매일경제 경제
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