Arab Today, arab today korean banks temporarily halt household lending
Last Updated : GMT 11:16:14
Arab Today, arab today
Arab Today, arab today

Korean banks temporarily halt household lending

Arab Today, arab today

Arab Today, arab today Korean banks temporarily halt household lending

Seoul - Yonhap

South Korea's major banks said Thursday that they temporarily suspended the extension of fresh household loans in a bid to join the regulator's efforts to curb excessive growth of household debt. Local banks, including Shinhan and Hana, said they have begun to halt extending fresh home loans, including mortgage lending and some types of credit loans, and will do so until the end of August. The move came as local banks' household loan growth is not showing signs of easing despite the government's move to stem snowballing household debt. In late June, the government unveiled a set of measures to curb snowballing household debt by tightening banks' loan-to-deposit ratios and mending banks' lending practices. As of the end of March, household debt surpassed the 800 trillion won (US$746.4 billion) mark due to a long streak of low rates and the economic recovery. Agricultural cooperative lender Nonghyup said it plans to suspend all kinds of household loans, including mortgage lending, until the end of this month to comply with the regulator's move to stem household debt. No. 3 lender Shinhan Bank said it plans to hold off on the extension of new mortgage loans until end-August and some types of credit loans will not be extended until they receive approval from the bank's headquarters. Its rival Hana Bank took similar actions. "The step aims to gradually mend the practice of extending mortgage loans and to beef up risk management," said an official at Shinhan Bank. The watchdog is seeking to lead local banks to extend mortgage loans with fixed rates. Woori Bank said it will apply stricter home loan standards instead of suspending household lending. But top lender Kookmin Bank, which focuses on retail banking, said it did not halt the home loan extension, but will closely monitor the situation. Rising household debt has been a major headache for Korean policymakers as the central bank's ongoing tightening moves increase households' burdens to service debt. But a delay in raising the key rate also aggravates their indebtedness, which is feared to curb consumer spending and hurt the economy. According to the Bank of Korea, local banks' home loans rose by 2.3 trillion won on-month to 445.5 trillion won as of end-July. Bank mortgage loans grew by 1.9 trillion won to 297.3 trillion won as of the end of last month. Local banks, which were once hit hard by the global financial crisis, have begun to increase their assets as the local economy recovers. Due to cautions against soured construction loans, domestic lenders have been focusing more on extending loans to households. The Financial Services Commission (FSC), the financial regulator, said household debt grew at an annual rate of 13 percent between 1999 and 2010, hovering at an average economic growth of 7.3 percent. Last year, the ratio of household debt to household disposable income stood at 152.7 percent, higher than the average of 134.1 percent for the Organization for Economic Cooperation and Development.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today korean banks temporarily halt household lending Arab Today, arab today korean banks temporarily halt household lending

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday