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| ▲ This file photo, taken Oct. 3, 2021, shows signs about a bank's loan programs that were put up on the exterior of a lender in Seoul. South Korea's financial regulator is reviewing further tightening rules on household loans in a bid to curb the fast growth of household debt. (Yonhap) |
household loans-February tally
Banks' household lending down for 3rd month in Feb. amid tightened rules
SEOUL, March 10 (Yonhap) -- Household loans extended by banks in South Korea shrank for the third straight month in February as the central bank delivered a series of interest rate hikes to rein in inflation and household debt, central bank data showed Thursday.
Outstanding bank loans to households came to 1,060.1 trillion won (US$865.4 billion) as of the end of February, down 100 billion won from the previous month, according to the data from the Bank of Korean (BOK).
This marked the third straight month that the banks' household loans have declined on-month following a 200 billion-won fall in December last year.
The decline came as the central bank has raised its key policy rate three times for a combined 0.75 percentage-point hike since August to tame inflation and household debt.
In tandem with the BOK's hawkish stance, local banks have also tightened rules on lending.
Banks' mortgage loans grew 1.8 trillion won on-month to 782.8 trillion won in February, but other lending, mostly unsecured loans, fell 1.9 trillion won over the cited period to 276.1 trillion won, the data showed.
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