Five Major Banks' Household Loans Increase for 10 Consecutive Months... Growth Rate Slows Down

Major commercial banks' household loans have increased for 10 consecutive months. However, the rate of increase has slowed, and the growth in mortgage loans, which had been driving the upward trend, also decreased compared to the previous month.

According to the financial sector on the 4th, the outstanding balance of household loans at the five major domestic commercial banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) at the end of last month was 695.7922 trillion won, an increase of 47.79 billion won compared to the previous month (695.3143 trillion won). The increase was smaller than last month's (2.9049 trillion won).

The outstanding balance of mortgage loans, which had been leading the increase in household loans, rose but the growth rate slowed. At the end of last month, the mortgage loan balance was 537.0964 trillion won, up 2.7713 trillion won from the previous month. The increase was smaller than the previous month's (4.4329 trillion won).

In the case of unsecured loans, the decline continues. Last month, the outstanding balance of unsecured loans was 103.6851 trillion won, down 1.776 trillion won from the previous month. Except for October last year, the decline has continued since December 2021.

Meanwhile, fixed deposits at the five major banks amounted to 886.2501 trillion won, an increase of 23.6316 trillion won compared to the previous month. Demand deposits also rose by 23.5536 trillion won to 614.2656 trillion won. During the same period, installment savings decreased by 13.2672 trillion won to 33.2204 trillion won.

[Image source=Yonhap News]