Credit loans reduced by more than 3 trillion won… Jeonse loan also KRW 1.6 trillion↓
Term deposit interest rate dropped to 3%… Balance decreased by KRW 6.2 trillion
The decline in household loans continued in the first month of the new year due to high interest rates and the frozen real estate market.
According to the financial sector on the 1st, the balance of household loans at the end of January of the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) stood at 688.6478 trillion won, compared to the end of December last year (692.5335 trillion won). It decreased by 3.8858 trillion won.
The balance of mortgage loans increased by only 216.1 billion won in a month to 513.3577 trillion won.
On the other hand, the balance of personal credit loans decreased by 3.3526 trillion won to 115.6247 trillion won.
Personal unsecured loan balances declined throughout last year, apparently because borrowers paid off unsecured loans with relatively high interest rates first as interest rates rose.
The balance of the jeonse loan was 130.4182 trillion won, down 1.5688 trillion won in one month.
This is due to the increased confusion in the jeonse market, such as the spread of the ‘reverse jeonse crisis’ in which landlords cannot return deposits to tenants due to the recent drop in housing prices while the demand for jeonse loans has decreased as interest rates have risen.
In the case of corporate loans from the five major banks, the balance of loans to large corporations was 109.4832 trillion won, an increase of 3.9658 trillion won from the end of the previous month (105.5174 trillion won).
On the other hand, the balance of small and medium-sized business loans decreased by 88.4 billion won in one month to 598.1 trillion won.
Looking at the deposit balance, the balance of time deposits at the five major banks as of the end of January was 812.25 trillion won, down 6.1866 trillion won from the end of December last year (818.4366 trillion won).
Time deposit interest rates at major banks rose to the 5% range in November last year, but fell to the 3% range this month as market interest rates have recently fallen.
As of the end of January, the balance of regular savings accounted for 36.8367 trillion won, down 394.3 billion won from the end of the previous month.
The balance of the MMDA savings account (MMDA) decreased by 7.2573 trillion won to 105.6927 trillion won.
The balance of demand deposits decreased by 34.3166 trillion won to 571.5289 trillion won.
An official from a commercial bank explained, “As companies deposit cash assets for year-end accounting management purposes and then withdraw the funds at the beginning of the year, demand deposits and MMDA balances tend to decrease in January.”
/yunhap news
