Hana Bank will halt sales of variable-rate mortgage loan products and cap overdraft accounts.
According to the financial sector on the 7th, Hana Bank decided to temporarily suspend new non-face-to-face mortgage loan originations starting that day.
Starting on the 11th, new overdraft account limits will be capped at 50 million won. The existing measure capping each borrower's unsecured loan limit at 100 million won will remain in place.
Then, starting on the 12th, new originations of variable-rate mortgage loans will be temporarily suspended. The suspension of new variable-rate mortgage loans applies to both face-to-face and non-face-to-face lending.
The decision is aimed at joining the government's push to tighten total household loan management. A Hana Bank official said, "We decided to take these steps to efficiently manage household loans and maintain a stable, end-user-centered supply of financing."
Earlier, Hana Bank strengthened its own management of household loans by limiting household unsecured loans to a combined total of up to 100 million won per borrower and temporarily suspending new enrollments in mortgage insurance for mortgage loans. In addition, other banks are also tightening management through measures such as reducing mortgage loan limits.
From Jan. 1 to the 2nd of this month, the increase in household loans at the five major banks (excluding policy loans) exceeded by more than 1 trillion won the annual target submitted to the Financial Supervisory Service at the start of the year.