ID :
191945
Thu, 06/30/2011 - 07:38
Auther :
Shortlink :
https://oananews.org//node/191945
The shortlink copeid
Banks' loan delinquency rate hits 9-month high in May
SEOUL, June 30 (Yonhap) -- South Korean banks' loan delinquency rate rose to the highest level in nine months in May due mainly to an increase in soured property-linked loans, the financial watchdog said Thursday.
The overall delinquency rate of bank loans to companies and households came in at 1.3 percent as of the end of May, up 0.13 percentage point from the previous month, according to the Financial Supervisory Service (FSS).
The rate is measured based on loans which are overdue for more than one day. The May data marked the highest level since 1.5 percent tallied in August last year, the watchdog added.
A pile-up in distressed construction loans has hurt the financial health of local financial institutions, causing the financial watchdog to push them to dispose of such loans.
The default rate of bank corporate loans rose 0.16 percentage point to 1.75 percent as of the end of last month. The corresponding rate for lending to larger companies reached 0.49 percent, down 0.17 percentage point from the previous month, but that of loans to smaller firms gained 0.26 percentage point on-month to 2.08 percent, the watchdog said.
The average delinquency rate on banks' construction loans came in at 8.5 percent as of end-May, up 1.14 percentage points from the previous month.
The default rate on banks' household lending gained 0.11 percentage point on-month to 0.76 percent, it added.
"The watchdog plans to step up its monitoring of property-linked loans and to advise local banks to aggressively clean up bad debt," said an official at the FSS.
"In June, the delinquency rate is widely expected to fall as banks usually make efforts to make their balance sheet clean at the quarter-end."
sooyeon@yna.co.kr
(END)
The overall delinquency rate of bank loans to companies and households came in at 1.3 percent as of the end of May, up 0.13 percentage point from the previous month, according to the Financial Supervisory Service (FSS).
The rate is measured based on loans which are overdue for more than one day. The May data marked the highest level since 1.5 percent tallied in August last year, the watchdog added.
A pile-up in distressed construction loans has hurt the financial health of local financial institutions, causing the financial watchdog to push them to dispose of such loans.
The default rate of bank corporate loans rose 0.16 percentage point to 1.75 percent as of the end of last month. The corresponding rate for lending to larger companies reached 0.49 percent, down 0.17 percentage point from the previous month, but that of loans to smaller firms gained 0.26 percentage point on-month to 2.08 percent, the watchdog said.
The average delinquency rate on banks' construction loans came in at 8.5 percent as of end-May, up 1.14 percentage points from the previous month.
The default rate on banks' household lending gained 0.11 percentage point on-month to 0.76 percent, it added.
"The watchdog plans to step up its monitoring of property-linked loans and to advise local banks to aggressively clean up bad debt," said an official at the FSS.
"In June, the delinquency rate is widely expected to fall as banks usually make efforts to make their balance sheet clean at the quarter-end."
sooyeon@yna.co.kr
(END)
