Decision to Suspend Agent Sales Following Hana Bank
Household Loan Growth Rate at 5.6%... Approaching Financial Authorities' Target
[Asia Economy Reporter Kim Jin-ho] To comply with the financial authorities' annual household loan total volume regulation target, Industrial Bank of Korea (IBK) has also started tightening loans. They decided to reduce the mortgage loan limit by restricting subscriptions to Mortgage Credit Insurance (MCI) and Mortgage Credit Guarantee (MCG), and to completely stop loans through individual loan agents.
According to the financial sector on the 29th, IBK stopped new subscriptions to mortgage loan MCI and MCG from the 23rd. MCI mainly applies to apartments, while MCG applies to multi-family and row houses. Limiting mortgage loan products linked to these insurances reduces the mortgage loan limit by about 50 million KRW in Seoul.
Since the 23rd, IBK has also stopped selling all loan products through loan agent channels. Banks usually handle loans through three routes: branches, online, and loan agents. Earlier, Hana Bank also exhausted the loan limits allocated to three out of six loan agent corporations and suspended loan sales until the end of October.
Meanwhile, IBK's household loan growth rate as of the end of August compared to the end of last year is 5.6%. This figure is close to the household loan total volume regulation target (5-6%) set by the financial authorities.
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