In November Last Year, Bank Loan Delinquency Rate at 0.48%... Up 0.02%p from Previous Month

[Asia Economy Reporter Kim Hyo-jin] The Financial Supervisory Service announced on the 21st that as of the end of November last year, the delinquency rate on won-denominated loans (principal and interest overdue for more than one month) at domestic banks stood at 0.48%, up 0.02 percentage points compared to the end of October.

In November last year, the amount of new delinquencies (1.6 trillion won) exceeded the amount of delinquent loan disposals (1.1 trillion won), resulting in an increase of 400 billion won in the balance of delinquent loans (8.2 trillion won). Compared to the end of November 2018, it fell by 0.11 percentage points.

The delinquency rate on large corporate loans was 0.66%, down 0.05 percentage points from the end of October. Compared to the end of November 2018, it decreased by 1.02 percentage points.

The delinquency rate on small and medium-sized enterprise loans recorded 0.62%, up 0.04 percentage points from the previous month. Compared to the same month last year, it decreased by 0.05 percentage points.

The delinquency rate on individual business owner loans, mostly self-employed loans, was 0.38%, up 0.03 percentage points from the previous month and down 0.02 percentage points compared to the same month last year.

The delinquency rate on household loans was 0.31%, up 0.02 percentage points from the previous month. It also rose by 0.02 percentage points compared to one year ago.

The delinquency rate on mortgage loans was 0.22%, up 0.01 percentage points from the previous month and 0.02 percentage points compared to the same month last year.

The Financial Supervisory Service stated its policy to "continue monitoring trends in new delinquencies and encourage strengthening loss absorption capacity by adequately provisioning loan loss reserves."

Provided by the Financial Supervisory Service