Five Major Banks' Household Loans Decrease for the First Time in 11 Months... Mortgage Loans Also Declining

Regular Savings and Time Deposits Decrease in Incoming Funds
While Standby Funds Increase

The outstanding balance of household loans at the five major commercial banks decreased for the first time in 11 months. This is the result of a decline in mortgage loans, which had been driving the rise in household loans.

According to the financial sector on the 1st, the outstanding balance of household loans at the five major domestic commercial banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) stood at 693.5684 trillion won at the end of last month. This is a decrease of 2.2238 trillion won from the previous month (695.7922 trillion won). Household loans, which had been on the rise since May last year, have turned to a decline after 11 months.

The reason for the decrease in household loan balances is that the outstanding balance of mortgage loans, which had been leading the increase in household loans, declined for the first time in 11 months. Last month, the outstanding balance of mortgage loans was 536.647 trillion won, down 44.94 billion won from the previous month (537.0964 trillion won).

Personal credit loans and jeonse deposit loans also decreased. Last month, the outstanding balance of personal credit loans was 102.4021 trillion won, down 1.283 trillion won from the previous month. Jeonse deposit loans stood at 118.5446 trillion won, down from 120.3323 trillion won the previous month. Personal credit loans have been declining since December 2021, except for October last year.

On the deposit side, fixed-term savings and installment savings decreased, while demand deposits and MMDA, which are liquid funds, increased. Fixed-term deposits amounted to 873.3761 trillion won, down 12.874 trillion won from the previous month (886.2501 trillion won). Last month, the outstanding balance of fixed-term installment savings was 31.3727 trillion won, a decrease of 1.8477 trillion won compared to the previous month. On the other hand, demand deposits increased by 33.6226 trillion won from the previous month to 647.8882 trillion won. Money Market Deposit Accounts (MMDA) also rose by 19.4318 trillion won from the previous month to 127.8522 trillion won.