Household loans from the five major banks, including Kookmin, Shinhan, Hana, Woori, and NongHyup, rose by nearly 5 trillion won last month. This is interpreted as a surge in 'last-minute demand' as borrowers rushed to secure loans ahead of the implementation of the three-tiered Debt Service Ratio (DSR).
According to the financial sector on the 2nd, the household loan balance of the five major banks last month reached 748.0812 trillion won, an increase of 4.9964 trillion won compared to the previous month. This marks the largest increase this year. In April, it rose by 4.5337 trillion won.
Last month, the balance of housing mortgage loans from the five major banks was 593.6616 trillion won, an increase of 4.2316 trillion won from the previous month (589.4300 trillion won). Housing mortgage loans accounted for most of the increase in household loans.
So far this year, the increase in housing mortgage loans from the five major banks has been 1.5137 trillion won in January, 3.3835 trillion won in February, 2.3198 trillion won in March, and 3.7495 trillion won in April. This is the first time the increase has surpassed 4 trillion won.
Last month, the balance of credit loans from the five major banks was 103.3145 trillion won, an increase of 8.214 trillion won from the previous month (102.4931 trillion won). This marks an increase of 8.868 trillion won the previous month, resulting in back-to-back increases in the 8 trillion won range.
Typically, housing mortgage loans increase during the moving season in March and April. In particular, the introduction of the three-tier DSR regulation in July is seen as driving up loan demand.
The increase in credit loans seems to coincide with increased household expenditure during May, known as 'Family Month,' along with a rebound in the domestic and international stock markets, contributing to investment through borrowing.
Among corporate loans, the balance of loans to large corporations was 171.4183 trillion won, an increase of 5.0740 trillion won compared to the previous month, while loans to small and medium-sized enterprises, totaling 666.7411 trillion won, increased by 1.8064 trillion won from the prior month.