S. Korean banks’ household lending rises for 6th month in September

SEOUL, Oct. 11 (Xinhua) — South Korean banks’ household lending rose for the sixth successive month in September due to solid demand for mortgage loan, central bank data showed Friday.
Debt owed by households to deposit-taking banks expanded 5.7 trillion won (4.2 billion U.S. dollars) from a month earlier to 1,135.7 trillion won at the end of September, according to the Bank of Korea (BOK).
It continued to increase since April amid growing expectations for policy rate cuts.
The BOK lowered its benchmark interest rate by 25 basis points to 3.25 percent earlier in the day, marking the first rate decrease in almost four and a half years since May 2020.
Banks’ mortgage loan gained 6.2 trillion won last month on eased regulations to prop up housing prices. It was lower than an expansion of 8.2 trillion won in August.
Other loans to households, including credit loan, credit line and commercial real estate-backed loan, dwindled 500 billion won last month.
Banks’ corporate loan amounted to 1,316.2 trillion won at the end of September, up 4.3 trillion won from a month earlier.
Lending to big companies added 800 billion won, and loan to small firms mounted 3.5 trillion won last month. (1 won equals 0.00074 U.S. dollars) ■