Last month, the household loans of the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) increased by about 3.9 trillion won. Following the government's June 27 loan regulation announcement, the growth rate of household loans has been slowing.
According to the financial sector on the 1st, the household loan balance of the five major banks at the end of August was 762.8985 trillion won, an increase of 3.9251 trillion won compared to the end of the previous month. The monthly increase in household loans at the five major banks decreased from 6.7536 trillion won in June to 4.1386 trillion won in July. The increase last month decreased by 2.135 trillion won compared to July.
The slowdown in the increase of household loans is due to the decreased demand for housing loans (mortgages) following the government's June 27 regulations. At the end of last month, the mortgage balance was 607.6714 trillion won, an increase of 3.7012 trillion won compared to the previous month. This figure is 844 billion won lower than the previous increase of 4.5452 trillion won.
Personal credit loans have increased. The credit loan balance is 104.079 trillion won, which is an increase of 110.3 billion won compared to the previous month. This contrasts with a decrease of 433.4 billion won in July.
Last month, the large corporations' loan balance was 167.9179 trillion won, an increase of 2.9885 trillion won compared to the previous month. In July, it had decreased by 722.1 billion won. Loans to small and medium-sized enterprises also increased to 668.9622 trillion won, an increase of 3.2762 trillion won compared to the previous month.
It is interpreted that as household loan regulations have been strengthened, banks actively turned to corporate loan operations.