The financial authorities are reviewing a plan to exclude final payment loans for actual residence from the household loan cap management. The step aims to reduce harm to end users who cannot pay the balance on dwellings they purchased due to the cap.
According to the financial authorities on the 29th, the Financial Services Commission is reviewing a plan to exclude final payment loans from the lending cap and to give banks a separate quota for this. The additional quota is being discussed to be allocated first to banks that faithfully complied with the household loan cap in the first half.
Earlier, the Financial Services Commission (FSC) presented a cap target to curb this year's household loan growth rate to 1.5% of the year-end balance. This year, the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) can increase lending by only 433.63 billion won, but as of mid-month it was exceeded by about 8%. By bank, three banks have exceeded their targets.
The financial authorities believe that if the current trend of household loan growth continues, commercial banks will not be able to handle final payment loans in the second half. The financial authorities are conducting a full survey targeting establishments scheduled for move-in to see if there are cases where final payment loans cannot be obtained.
The Financial Services Commission (FSC) held a meeting the previous day with bank lending officers to discuss responses to group loans. The authorities plan to determine the amount of support after identifying year-end demand for final payment loans by business sites. The FSC is expected to roll out a lending regulatory plan next month that includes these details.