As banks that have exceeded this year's annual household loans growth target are appearing one after another, major commercial banks are effectively managing lending in the second half at a "shutdown" level.
According to the financial sector on the 12th, Hana Bank stopped accepting applications through loan brokers starting on the 10th for mortgage loan and jeonse deposit loans to be executed in September. Shinhan Bank closed its loan broker intake channel on the 8th. Two days later, it reduced the mortgage loan limit by restricting enrollment in mortgage credit insurance (MCI/MCG).
KB Kookmin Bank on the 10th sharply reduced the maximum limit for home purchase funds loans in the Seoul metropolitan area and regulated area to 300 million won from the previous 600 million won. After the government limited the mortgage loan ceiling in the Seoul metropolitan area to 600 million won under the household debt management plan on Jun. 27 last year, this was the first time a commercial bank lowered it further to 300 million won.
Other banks are not immediately planning to announce similar measures, but they appear likely to review them at any time if the "balloon effect" from concentrated demand becomes visible.
Banks rushed to raise lending thresholds because outstanding balances have passed a critical point and are rising sharply, according to analyses. As of the 9th, the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) had a total outstanding balance of household loans (excluding policy loans) of 648.3607 trillion won, up 3.3907 trillion won from the end of last year (644.9700 trillion won).
The annual household loans growth target that these banks submitted to the Financial Supervisory Service early this year is about 4.34 trillion won, meaning roughly 80% of the target has been reached. Conversely, there is just over 20% room left for additional lending, but individual bank conditions do not look easy. That is because three of the five major banks have already exceeded their targets.