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212297
Wed, 10/12/2011 - 06:56
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https://oananews.org//node/212297
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Banks' household loan growth hits 8-month low in Sept.
SEOUL (Yonhap) - Growth of South Korean banks' household loans hit an eight-month low in September due mainly to the regulator's push to curb household debt, the central bank said Wednesday.
Local banks' household loans, including mortgage and credit loans, totaled 448.7 trillion won (US$381.4 billion) as of the end of September, up 600 billion won from the previous month, according to the Bank of Korea (BOK).
The September monthly growth marked the slowest expansion since such lending fell 1 trillion won in January, the BOK said.
"The growth of bank mortgage loans slowed, affected by the regulator's move to curb household debt. Credit lending fell mainly because the receipt of bonus ahead of the fall harvest holiday cut demand for such loans," said Kim Hyun-kee, a senior economist at the BOK.
"The move to curb household debt seemed to prompt banks to expand corporate lending in September."
Banks' mortgage lending grew by 1.1 trillion won on-month to 299.7 trillion won as of end-September, compared with a 1.2 trillion won gain in August. Credit loans stood at 148 trillion won, down 500 billion won from a month earlier.
The data came as local banks scurried to curtail household loans in a bid to meet an advised target of 0.6 percent monthly loan growth.
South Korea is grappling with growing household debt, which reached 876.3 trillion won as of the end of June. Households' high indebtedness is feared to be a major constraint on economic growth by limiting domestic demand.
The regulator announced steps to stem household debt in June, but the growth of household debt accelerated in July and August, prompting the watchdog to give a strong warning to banks. Several banks halted the extension of fresh home loans in August.
Meanwhile, South Korean banks' corporate lending grew at a faster clip last month than in August as the regulator was pushing to stem household loans, it added.
Corporate loans by local banks rose 4.8 trillion won on-month to 553.6 trillion won, faster than a 3.1 trillion won expansion, the BOK said.
Bank lending to large firms grew 3.1 trillion won on-month to 108.7 trillion won and lending to smaller firms rose 1.7 trillion won to 444.9 trillion won.
The data came one day before the BOK holds its monthly rate-review session. Analysts forecast that the BOK is likely to freeze the key interest rate at 3.25 percent for the fourth consecutive month on increased external economic uncertainty.
Local banks' household loans, including mortgage and credit loans, totaled 448.7 trillion won (US$381.4 billion) as of the end of September, up 600 billion won from the previous month, according to the Bank of Korea (BOK).
The September monthly growth marked the slowest expansion since such lending fell 1 trillion won in January, the BOK said.
"The growth of bank mortgage loans slowed, affected by the regulator's move to curb household debt. Credit lending fell mainly because the receipt of bonus ahead of the fall harvest holiday cut demand for such loans," said Kim Hyun-kee, a senior economist at the BOK.
"The move to curb household debt seemed to prompt banks to expand corporate lending in September."
Banks' mortgage lending grew by 1.1 trillion won on-month to 299.7 trillion won as of end-September, compared with a 1.2 trillion won gain in August. Credit loans stood at 148 trillion won, down 500 billion won from a month earlier.
The data came as local banks scurried to curtail household loans in a bid to meet an advised target of 0.6 percent monthly loan growth.
South Korea is grappling with growing household debt, which reached 876.3 trillion won as of the end of June. Households' high indebtedness is feared to be a major constraint on economic growth by limiting domestic demand.
The regulator announced steps to stem household debt in June, but the growth of household debt accelerated in July and August, prompting the watchdog to give a strong warning to banks. Several banks halted the extension of fresh home loans in August.
Meanwhile, South Korean banks' corporate lending grew at a faster clip last month than in August as the regulator was pushing to stem household loans, it added.
Corporate loans by local banks rose 4.8 trillion won on-month to 553.6 trillion won, faster than a 3.1 trillion won expansion, the BOK said.
Bank lending to large firms grew 3.1 trillion won on-month to 108.7 trillion won and lending to smaller firms rose 1.7 trillion won to 444.9 trillion won.
The data came one day before the BOK holds its monthly rate-review session. Analysts forecast that the BOK is likely to freeze the key interest rate at 3.25 percent for the fourth consecutive month on increased external economic uncertainty.
