Since the beginning of the year, the financial authorities’ loan tightening to prevent the act of buying my house and investing in stocks has been accelerating. As the total amount regulation to set the rate of increase in household loans to 5% per year is revived this year, the door for loans is getting narrower.
According to the financial sector on the 31st, the credit balance of the five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, was 135.409.9 billion won as of the 28th, an increase of 1.761.7 trillion won from the end of last year. This year, banks are expected to not exceed 2 trillion won per month, following guidelines from financial authorities, such as reducing their credit limit. 2 trillion won per month is the credit loan management target set by the authorities.
However, the opening of new negative bankbooks (limited loans) has steadily increased every day, and has increased sharply compared to the end of last year. In the 19 business days from January 28 to January this year, the number of newly opened negative bankbooks for the five major banks reached 43,143. It increased from 1,000 cases a day at the end of last year to 2,000 cases a day in January. Accordingly, as of the 28th, the amount of use of negative bankbook loans increased by 1.2148 billion won from the end of last year. In particular, in January, the negative bank account balance increased by 500 billion won a day according to the subscription schedule for public offerings.
A commercial bank official said, “As the news that the government is promoting the introduction of amortization of principal for large credit loans, demand is being driven by negative bankbooks, which are not expected to be regulated.” The increased demand to do this is also playing a role.”
With household loans showing a steadily increasing trend, the financial authorities urged the banks to regulate the total amount of loans. This is a figure enforced by financial authorities to ensure that the rate of increase in household loans does not increase more than a certain level compared to the previous year. For example, if the authorities set this number at 5%, each bank should manage that year’s household loan growth rate does not exceed 5% year-on-year.
The target for the total amount of household loans proposed by the Financial Supervisory Service in 2019 was 5%. Last year, this regulation was omitted with the intention of actively seeking support for small businesses and small businessmen affected by the Corona 19 incident. Again this year, commercial banks set their annual loan growth target at 5-8% and reported it to the financial authorities. This is because loan demand is expected to remain steady due to the continuing Corona 19 crisis. In fact, last year’s five major commercial banks’ total household loans surged 9.73% (59,3977 billion won) from 2019.
As loans continued to increase, the Financial Supervisory Service held a related meeting on the 26th and told commercial bank household loan executives, “At the end of last year, banks submitted their annual and monthly household loan growth rate management targets of this year. It was known. Accordingly, the banking sector predicts that the target for household loan growth this year will be reduced to around 5%, which is the level of 2019. Some banks have already started managing loans. This is why Woori Bank reduced the limit on negative bankbook loan products by up to 50 million won on the 29th.
Although household loans are rapidly tightening, the authorities are planning to ease the regulation on the total debt principal repayment ratio (DSR) for some common people, including youth, taking into account the Corona 19 situation. In March, the Financial Services Commission will apply DSR, which determines the total debt and income of borrowers and lends money according to their repayment ability. However, the Financial Services Commission decided to flexibly apply DSR to young people with low incomes and those with temporary income declines.
[문일호 기자 / 이새하 기자]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]