Household Loans at 5 Major Banks Continue to Rise... Up 5.6 Trillion Won

Although the government’s household debt control policies have led banks to tighten loan conditions or raise interest rates, somewhat slowing the growth of household loans, the increase remains steep.

As of the end of September, the outstanding household loans at the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) amounted to 730.9671 trillion won. This is an increase of 5.6029 trillion won compared to the previous month (August), but significantly lower than the increases of 7.166 trillion won in July and 9.6259 trillion won in August.

The proportion of mortgage loans in the household loan growth remained large. The outstanding mortgage loans stood at 574.5764 trillion won, up 5.9148 trillion won from the previous month. This increase is smaller compared to the 7.5974 trillion won and 8.9115 trillion won rises in July and August, respectively. Personal credit loans increased by only 900 million won from the previous month, totaling 103.4571 trillion won.

The deposit scale of the five major banks rose by 654 billion won from the previous month to 2,033.067 trillion won. Time deposits increased by 4.8054 trillion won to 930.4713 trillion won, and installment savings rose by 1.2157 trillion won to 38.0074 trillion won.

Demand deposits, including Money Market Deposit Accounts (MMDA), increased by 6.0851 trillion won from the previous month to 623.3173 trillion won.

The government's household debt control policy has shown effectiveness, with the increase in household loans somewhat slowing down, but it still remains steep. [Image source=Yonhap News]