Household loans grow slowest in 7 months in Sept. on tighter rules, higher rates
Household loans extended by banks increased by the smallest in seven months in September amid tightened lending regulations and higher interest rates, central bank data showed Thursday. Outstanding household loans extended by banks stood at 1,198.9 trillion won ($895.5 billion) last month, up 0.6 trillion won from a month earlier, slowing from the previous month's 3.5 trillion-won rise, according…
Banks extended household loans by the smallest amount in seven months in September, according to data from the Bank of Korea. The total outstanding household loans reached 1,198.9 trillion won, marking a slight increase of 0.6 trillion won compared to August. This represents a slowdown from the previous month's growth of 3.5 trillion won.
Mortgage loans saw a 2.9 trillion won increase, while other household loans declined by 2.3 trillion won. The Bank of Korea raised its benchmark interest rate to 3 percent in July and August, the first consecutive rate hikes since January 2023. Meanwhile, household loans issued by all financial institutions decreased by 2.2 trillion won in September compared to the previous month.
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