ID :
185080
Sun, 05/29/2011 - 07:21
Auther :
Shortlink :
https://oananews.org//node/185080
The shortlink copeid
Financial firms' corporate loans grow by most in 30 months in Q1
SEOUL, May 29 (Yonhap) -- South Korean financial firms' corporate loans grew by the largest amount in 30 months in the first quarter on the economic recovery and their efforts to expand loans to smaller firms, the central bank said Sunday.
Corporate lending extended by banks and non-bank institutions stood at 740.3 trillion won (US$683.9 billion) as of the end of March, up 21.2 trillion won from three months earlier, according to the Bank of Korea (BOK).
It was the largest quarterly growth since a 29.7 trillion won gain registered in the third quarter of 2008, it added.
"In the fourth quarter, corporate loans declined as banks wrote off bad debt. Such lending rebounded last quarter as such seasonal effects were absent and financial firms made efforts to expand loans to smaller firms," said Kim Byoung-soo, an official at the BOK.
By industry, lending to manufacturers reached 235.1 trillion won as of end-March, up 10.9 trillion won from the preceding quarter. The first-quarter number marked the largest expansion since a 14 trillion won expansion in the third quarter of 2008.
Lending to builders declined by 200 billion won on-quarter to 54.9 trillion won, less than a 4.1 trillion won fall seen in the fourth quarter of 2010.
Bank lending to the construction sector rose by 418.2 billion won to 38.5 trillion won, but non-bank institutions loans to builders shed 569.1 billion won to 16.4 trillion won mainly because savings banks were wary of extending loans on the fear of rising soured project financing lending, the bank noted.
The government has suspended operations of eight savings banks since January as the sector is staggering under mounting soured construction-related loans. One of them was sold to state-run banking group Woori Finance Holdings Co. The government is seeking to put the remainder up for sale.
sooyeon@yna.co.kr
(END)
Corporate lending extended by banks and non-bank institutions stood at 740.3 trillion won (US$683.9 billion) as of the end of March, up 21.2 trillion won from three months earlier, according to the Bank of Korea (BOK).
It was the largest quarterly growth since a 29.7 trillion won gain registered in the third quarter of 2008, it added.
"In the fourth quarter, corporate loans declined as banks wrote off bad debt. Such lending rebounded last quarter as such seasonal effects were absent and financial firms made efforts to expand loans to smaller firms," said Kim Byoung-soo, an official at the BOK.
By industry, lending to manufacturers reached 235.1 trillion won as of end-March, up 10.9 trillion won from the preceding quarter. The first-quarter number marked the largest expansion since a 14 trillion won expansion in the third quarter of 2008.
Lending to builders declined by 200 billion won on-quarter to 54.9 trillion won, less than a 4.1 trillion won fall seen in the fourth quarter of 2010.
Bank lending to the construction sector rose by 418.2 billion won to 38.5 trillion won, but non-bank institutions loans to builders shed 569.1 billion won to 16.4 trillion won mainly because savings banks were wary of extending loans on the fear of rising soured project financing lending, the bank noted.
The government has suspended operations of eight savings banks since January as the sector is staggering under mounting soured construction-related loans. One of them was sold to state-run banking group Woori Finance Holdings Co. The government is seeking to put the remainder up for sale.
sooyeon@yna.co.kr
(END)
