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204682
Thu, 09/01/2011 - 12:45
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https://oananews.org//node/204682
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Bank loan delinquency rate rebounds in July
SEOUL, Sept. 1 (Yonhap) -- South Korean banks' loan delinquency rate rebounded in July from the previous month mainly due to seasonal factors and a rise in credit risks held by ailing firms, the financial watchdog said Thursday.
The overall delinquency rate of bank loans to companies and households came in at 1.13 percent as of the end of July, up 0.16 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 loan delinquency rate rebounded after hitting a six-month low of 0.97 percent in June.
In June, the loan delinquency rate tends to fall as banks usually try to clean up their balance sheets at the quarter-end, the FSS said. It also said that the delinquency rate rose last month due to the assessment of corporate credit risks.
The delinquency rate on banks' household lending shot up to the highest level in 29 months in July, pointing to growing risks from snowballing household debt.
The corresponding rate of household loans came in at 0.77 percent as of the end of July, up 0.05 percentage point from the previous month, it added. The data marked the highest level since 0.89 percent in February 2009.
The default rate of bank corporate loans rose 0.25 percentage point to 1.44 percent as of end-July. The corresponding rate for lending to larger companies reached 0.4 percent, up 0.15 percentage point from June. The delinquency rate of loans to smaller firms gained 0.28 percentage point on-month to 1.71 percent, the watchdog said.
"Global financial market jitters and inflation are feared to worsen households' capacity to service debt. The FSS plans to advise banks to continue to clean up bad loans," said an official at the FSS.
The overall delinquency rate of bank loans to companies and households came in at 1.13 percent as of the end of July, up 0.16 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 loan delinquency rate rebounded after hitting a six-month low of 0.97 percent in June.
In June, the loan delinquency rate tends to fall as banks usually try to clean up their balance sheets at the quarter-end, the FSS said. It also said that the delinquency rate rose last month due to the assessment of corporate credit risks.
The delinquency rate on banks' household lending shot up to the highest level in 29 months in July, pointing to growing risks from snowballing household debt.
The corresponding rate of household loans came in at 0.77 percent as of the end of July, up 0.05 percentage point from the previous month, it added. The data marked the highest level since 0.89 percent in February 2009.
The default rate of bank corporate loans rose 0.25 percentage point to 1.44 percent as of end-July. The corresponding rate for lending to larger companies reached 0.4 percent, up 0.15 percentage point from June. The delinquency rate of loans to smaller firms gained 0.28 percentage point on-month to 1.71 percent, the watchdog said.
"Global financial market jitters and inflation are feared to worsen households' capacity to service debt. The FSS plans to advise banks to continue to clean up bad loans," said an official at the FSS.
