Bank of Korea, 7month 16day benchmark rate raised to 2.75%: commercial banks’ household lending effectively suspended
The Bank of Korea 7month 16day raised the benchmark rate by 0.25percentage points to 2.75%. Major commercial banks are cutting back or suspending new household loan windows, and 5of the 3banks have already exceeded their annual household lending targets. Further rate hikes are also being raised as a possibility.
The Bank of Korea’s Monetary Policy Board on 7month 16day raised the benchmark rate by 0.25percentage points, deciding on 2.75%. This is the direct trigger for higher loan rates.
Major commercial banks have recently been in a position to effectively suspend new household loan business. It is reported that some branches are not accepting applications or have tightened screening.
5of the 3banks have already exceeded their annual household lending targets. It is explained that the target overrun is behind the reduction in business.
By bank, they are implementing limit management and intake restrictions centered on mortgage and credit-loan windows. Some products have been temporarily suspended from new supply.
Experts said 7following the rate hike in 8month or 10month, they expect another rate hike. If additional hikes become a reality, loan conditions are likely to tighten further.
The financial authorities and the banking sector are said to be monitoring household loan management conditions. Related notices and product information can be checked through each bank’s official channels.
Individuals planning to take out a loan should check notices on each bank’s window operations and changes to loan conditions. Depending on the notice, application procedures and conditions may change.
Sources: 연합뉴스 경제
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