Commercial banks and insurers to sharply cut mortgage and credit loans in the second half of the year
Major commercial banks are sharply reducing mortgage loan limits in the second half of the year and also scaling back credit and contract loans. Shinhan Bank has temporarily suspended handling some mortgage products (MCI and MCG), and insurers are also restricting the issuance of mortgage loans and policy-loan products. 6The banking sector’s household loans for the month increased by 7won 6,000billion.
Major commercial banks have decided to sharply reduce mortgage and credit loans in the second half of the year. Direct financing impacts are expected for investors and end-users.
Banks have cut some mortgage loan limits by about half and have restricted loan broker activity. In some cases, commissions for brokers and channel management have also been reduced.
Shinhan Bank has 7in 9announced that it will temporarily suspend MCI and MCG products when handling mortgage loans. The measure takes effect immediately.
Credit loans and policy loans under insurance contracts are also moving toward reduction. The insurance industry has decided to scale back mortgage loans and policy loans and has revised related internal guidelines.
The insurance industry said it would limit loan origination due to the recent sharp increase in household lending. In the industry, insurers explained that 5 years later, the fact that household lending increased by the largest margin was the reason for the measure.
In statistics, 6 in bank household loans increased by 7 trillion6,000 billion won. This figure is cited as the reason for bringing forward the timing of changes in banks’ lending strategies.
Banks and insurers announced related policies in early 7, and the specific limits, targets, and implementation timing are finalized through individual product notices.