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Rate of household loans slows in November to 4 trillion won

Published: 01 Dec. 2024, 17:24

[YONHAP]

A passerby walks by signs about banks' loan programs in Seoul on Sunday.

Outstanding household credit extended by all financial institutions, including commercial banks, savings banks, and insurance and card companies, rose by 4 trillion won ($2.86 billion) from a month earlier in November, slowing from a 6.6 trillion won increase the previous month.

Last month, the value of loans extended by the nonbanking sector, such as savings banks and insurance firms, surpassed that of the banking sector for the first time in more than two years, apparently due to a balloon effect from financial authorities' pressure on banks to curb household loans.

The growth of household loans issued by banks halved in November from the previous month's 3.9 trillion won, but the growth of loans by the nonbanking institutions remained nearly unchanged from a month earlier at around 2.7 trillion won.

Financial authorities have said they will continue to make efforts to reduce household loans, partly by requiring detailed plans for loan extension from all major lenders in both the banking and nonbanking sectors.