Internet Bank Loans Increase for 6 Consecutive Months... 6 Trillion Won Up in Half a Year

[Asia Economy Reporter Buaeri] The loan balances of the three internet-only banks have been increasing for six consecutive months.

According to the banking sector on the 3rd, as of the end of last month, the total loan balance of the three internet-only banks (Kakao, K Bank, Toss Bank) was 39.7463 trillion KRW. This is an increase of about 911.8 billion KRW compared to the previous month. Compared to the end of last year (33.4829 trillion KRW), it has increased by 6.2634 trillion KRW over six months.

By bank, Kakao Bank holds 26.8163 trillion KRW, K Bank 8.73 trillion KRW, and Toss Bank 4.2 trillion KRW.

This contrasts with the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup), whose household loans have been declining for six consecutive months. As of the end of last month, the household loan balance of the five major commercial banks was 699.6521 trillion KRW, a decrease of 1.4094 trillion KRW from the previous month. It has fallen below 700 trillion KRW after six consecutive months of decline this year.

This phenomenon is interpreted as a result of declining asset markets such as stocks and cryptocurrencies reducing loan demand from high-credit borrowers, while loan demand from middle- and low-credit borrowers for living expenses and other purposes continues.