4th Impression Book... Strengthening Household Loan Management
Loan Growth Not Curbed Despite Consecutive Interest Rate Hikes
KB Kookmin Bank and Woori Bank decided on the 5th to further raise loan interest rates as part of strengthening household loan management.
According to the financial sector, KB Kookmin Bank decided to raise the interest rates of loan products such as 'KB Mortgage Loans (Variable and Mixed)' and 'KB General Real Estate Secured Loans' by 0.3 percentage points each starting from the 8th. Previously, KB Kookmin Bank raised mortgage loan interest rates by 0.13 percentage points and 0.2 percentage points on the 3rd and 18th of last month, respectively. From the 29th, refinancing and multi-homeowner mortgage loans were also restricted. On the 2nd of this month, the interest rates for jeonse deposit loans were uniformly increased by 0.3 percentage points.
Woori Bank also plans to raise the interest rates of face-to-face and non-face-to-face apartment mortgage loans, as well as mortgage loans for multi-family and row houses outside apartments, by 0.1 to 0.4 percentage points starting from the 12th. In addition, the interest rates for 2-year fixed-rate jeonse deposit loans will be increased by 0.2 to 0.25 percentage points. Following consecutive interest rate hikes on mortgage loans and jeonse deposit loans on the 12th and 24th of last month and the 2nd of this month, Woori Bank has decided on an additional increase.
Major commercial banks have been raising interest rates one after another since early last month due to pressure from financial authorities to strengthen household loan management, but the steep increase in loans continues. The outstanding balance of household loans at the five major banks reached 715.7383 trillion won at the end of last month, increasing by 7.166 trillion won in one month. This marked the largest monthly increase in three years and three months since April 2021, when it rose by 9.2266 trillion won.
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