【Youth Daily】 With the recent boom in the domestic stock market and the’debt investments’ craze, the scale of credit loans began to surge, and banknotes’ signs of’loan tightening’ began to appear again.
According to the banking sector, the credit balance of the five major commercial banks, including KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup, as of the 14th was totaled at 135.528.6 billion won. This is an increase of 1.87 trillion won in 10 business days compared to last December (133,6,481 billion won).
It began with the rein of banks tightening loans in the new year. In December of last year, as banks released loans, which had been suspended due to the total amount of loans, the demand for loans that had been blocked so far increased, and the movement to invest in the stock market, which is continuing the recent bull market, is considered to be the main reason for the surge in credit loans.
It is known that the Financial Supervisory Service held an emergency inspection meeting with banknotes on the 11th and re-ordered loan management in response to the surge in loans from the beginning of the year. Bank of Korea governor Lee Ju-yeol also expressed concern over the explosive increase in household debt on the 15th due to debt investment.
Accordingly, attention is being focused on whether the high-intensity lending regulation of banks, which was enforced until the end of last year, will be enforced again. As a preemptive measure, Shinhan Bank has already decided to reduce the maximum credit limit for employees of large and medium-sized companies by 50 million won starting on the 16th.
◆ Financial authorities re-order total loan amount management from banks
It is reported that the Financial Supervisory Service requested that the banks to comply with the monthly household loan management plan submitted by banks during a video conference with bank loan officers on the 11th and ordered to do their best to manage the total amount of household loans this year.
The Financial Supervisory Service believes that an excessive increase in household loans can lead to overheating of stocks and real estate, and it is a position to take preemptive measures. In addition, as the stocks of large fish-class companies are scheduled to be listed, the policy is to prevent excessive funding.
An official from the financial sector said, “The demand is still high compared to the loan regulation, and the recent booming stock market can stimulate the loan market,” he said. “There is a good chance that a preemptive regulation will come out.”
Gyu-sang Lee, Vice Chairman of the Financial Services Commission, said at the financial risk response group meeting on the 12th, “There are concerns about investment in assets such as real estate using excessive leverage.”
He said, “We will strengthen the special management of banknotes for large credit loans, especially those that are difficult to see as emergency living and business funds.”
◆ BOK Governor Lee Ju-yeol expressed concern over the’debt struggle’
Bank of Korea governor Lee Ju-yeol also expressed concern about the explosive increase in household loans due to the’debt-fighting’ craze at a press conference held live on the Internet after a regular meeting of the Financial Monetary Commission (hereinafter referred to as the Financial Services Commission) on the 15th.
Governor Lee Ju-yeol said, “The recent share price rise rate is much faster than in the past. If you invest in debt, you may incur losses that are difficult to bear due to price adjustments.”
This seems to be a remark of concern that the scale of household loans has increased by more than 100 trillion compared to 2019 due to’debt investment’, which has continued since last year, recording the largest increase since statistics in 2004.
Last year, the bank’s household loan balance was 98.8 trillion won, an increase of 10 trillion won from 2019, a year ago. This increase was the largest since statistics were compiled in 2004.
Governor Lee said, “Investment expansion based on excessive leverage can lead to losses that are difficult for investors to bear if price adjustments are made.”
Earlier, he mentioned on the 5th that “in a state where the level of debt is high and the gap between finance and real matters widens, the market can be greatly shaken even by a small impact.”
However, Governor Lee drew a line on concerns about insolvency caused by increased loans, saying, “I cannot help but worry about the risk of insolvency, but at this point, it is not likely that the insolvency of household debt will increase significantly.”
◆ Shinhan Bank’s credit limit cut…
Shinhan Bank started to reduce the size of credit loans first when the increase in credit loans in January was unclear.
According to the banknote on the 16th, Shinhan Bank will increase the maximum for each case of 4 credit products, including’Eliteron I·II’ and’Easy Office Worker Loan SⅠ·II’ for employees of designated companies from the 16th. It is lowered from 50 million to 200 million won to 100 to 150 million won.
This seems to be due to the fact that the financial authorities held an emergency inspection meeting with banknotes on the 11th and re-ordered loan management as loans showed a sharp increase again after resuming credit loans from early this year.
From the end of last year, Shinhan Bank has lowered the credit limit for professional positions such as doctors and lawyers from 50 million won to 100 million won. However, this measure has lowered the credit limit for not only professionals but also general workers.
An official from Shinhan Bank explained, “Last year, the limit for professional workers was only reduced, but this year, it means that the increase in household loans is serious enough to reduce the limit for ordinary workers.”
As Shinhan Bank has narrowed its credit limit, other banks’ movements have yet to be caught. However, as the financial authorities ordered monthly household loan management and total loan volume management this year, talks about reducing loans during next week are expected to come out as early as possible.
【Youth Daily = Reporter Inara】