Bank loans

Bank lending to households rises for third month on demand for mortgages l KBS WORLD

Photo: Yonhap News

Bank loans to households rose for the third consecutive month in June as banks eased barriers to obtaining housing-related loans.

According to Bank of Korea data released on Tuesday, the total value of outstanding household loans issued by banks reached 1.60.8 trillion won at the end of June, up 300 billion won from the previous month.

It was the third month in a row that the number rose, although growth slowed from May, when the figure rose by 400 billion won.

The latest surge is due to increased demand for housing-related loans, which rose 1.4 trillion won in a month to more than 789 trillion.

However, other unsecured non-mortgage loans, including credit loans, fell 1.2 trillion won to 270.4 trillion won last month, continuing their downward trend for the seventh consecutive month. The decline is mainly attributed to the higher cost of borrowing following recent central bank rate hikes.

According to separate data released by financial regulators, loans to households from both the banking sector and non-bank institutions increased by 700 billion won in June.