Five Major Banks' Household Loans Surge to Highest in 33 Months... Due to Mortgage Loans

Unsecured Loans Also Increase After 6 Months

The outstanding balance of household loans at the five major commercial banks increased again. It was found that the rise in household loans was driven by mortgage loans.

According to the financial sector on the 2nd, 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 698.003 trillion won. This is an increase of 4.4346 trillion won compared to the previous month (693.5684 trillion won). Household loans, which had been on the rise since May last year, turned to a decline in March for the first time in 11 months, but increased again last month.

The reason for the increase in the outstanding balance of household loans is the rise in mortgage loan balances. Last month, the mortgage loan balance was 540.9903 trillion won, up 0.8% (4.3433 trillion won) from the previous month (536.647 trillion won). In addition, personal credit loans also increased for the first time in six months. The outstanding balance of personal credit loans last month was 102.805 trillion won, an increase of 40.29 billion won compared to the previous month. Jeonse deposit loans decreased, but the rate of decline slowed. The balance last month was 117.9189 trillion won, down 62.57 billion won from the previous month (118.5446 trillion won). Compared to the 1.7877 trillion won decrease from February (120.3323 trillion won) to March, the amount of decrease has lessened.

Deposits decreased compared to the previous month as both demand deposits and MMDA, which are standby funds, declined. Regular savings increased by 1.0803 trillion won to 32.453 trillion won compared to the previous month. Demand deposits were 616.3371 trillion won, down 31.5511 trillion won from the previous month. MMDA also decreased by 12.6297 trillion won to 115.2225 trillion won compared to the previous month. The total deposit size was 1,976.8364 trillion won, down 18.4415 trillion won from the previous month.

The 'Mortgage Refinancing' service through an online, one-stop refinancing infrastructure surpassed 10,000 applicants within 15 days of its launch, with the application amount approaching 1.8 trillion won. The photo shows an ATM of a commercial bank installed in Yongsan-gu, Seoul, on the 25th. Photo by Jinhyung Kang aymsdream@