ID :
185081
Sun, 05/29/2011 - 07:22
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Shortlink :
https://oananews.org//node/185081
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Banks' loan default rate gains ground in April
SEOUL, May 29 (Yonhap) -- The loan default rate of South Korean banks gathered ground in April from a month earlier due mainly to increased delinquencies in project financing loans, the financial regulator said Sunday.
The average delinquency rate at the 18 local banks reached 1.17 percent of their total lending as of the end of April, up from 1.06 percent at end-March, the Financial Supervisory Service (FSS) said in a statement.
A sharp default gain in the banks' property loans was mainly responsible for the April advance, the watchdog said.
The average default rate on the banks' property project financing loans jumped to 7.24 percent as of end-April from 5.94 percent a month earlier, according to the FSS.
The average default rate on overall corporate lending came to 1.59 percent at end-April, up from 1.41 percent a month ago while the corresponding figure for household loans reached 0.65 percent from 0.63 percent, it added.
"The FSS plans to consistently monitor potential gains in property project financing loan defaults and encourage banks to reduce and write off soured loans," the regulator said.
In a bid to clear massive soured property financing loans threatening banks' financial health, seven major local banks are moving to establish a debt clearer to buy up 1 trillion won of such distressed loans during June.
pbr@yna.co.kr
(END)
The average delinquency rate at the 18 local banks reached 1.17 percent of their total lending as of the end of April, up from 1.06 percent at end-March, the Financial Supervisory Service (FSS) said in a statement.
A sharp default gain in the banks' property loans was mainly responsible for the April advance, the watchdog said.
The average default rate on the banks' property project financing loans jumped to 7.24 percent as of end-April from 5.94 percent a month earlier, according to the FSS.
The average default rate on overall corporate lending came to 1.59 percent at end-April, up from 1.41 percent a month ago while the corresponding figure for household loans reached 0.65 percent from 0.63 percent, it added.
"The FSS plans to consistently monitor potential gains in property project financing loan defaults and encourage banks to reduce and write off soured loans," the regulator said.
In a bid to clear massive soured property financing loans threatening banks' financial health, seven major local banks are moving to establish a debt clearer to buy up 1 trillion won of such distressed loans during June.
pbr@yna.co.kr
(END)
