Domestic bank won loan delinquency rate slightly increased to 0.61% at the end of April

Domestic bank won loan delinquency rate slightly increased to 0.61% at the end of April

(Seoul = Yonhap News) Reporter Kang Ryu-na = In April, the delinquency rate of Korean won loans from domestic banks rose slightly.

According to the Financial Supervisory Service on the 18th, the delinquency rate of Korean won loans (based on principal and interest delinquency for more than one month) of domestic banks at the end of April was 0.61%.

It rose to 0.62% last February, fell to 0.56% at the end of March, and reached a similar level in just one month.

Compared to the end of April last year (0.57%), a year ago, it is 0.04%p higher.

The bank's loan delinquency rate reached 0.62% in February, the highest in nine months, but fell to 0.56% in March.

The size of new overdue receivables in April was 2.9 trillion won, an increase of 200 billion won from the previous month (2.7 trillion won).

The scale of delinquent debt settlement was KRW 1.6 trillion, down KRW 2.7 trillion from the previous month (KRW 4.3 trillion).

The Financial Supervisory Service explained, “The delinquency rate has increased due to the decrease in the scale of reorganization, such as decommissioning and sale.”

As of April, the new delinquency rate was 0.12%, up 0.01%p from the previous month (0.11%) and similar to a year ago.

By sector, the overall delinquency rate for corporate loans was 0.74%, up 0.06 percentage points from the previous month.

The loan delinquency rate for small and medium-sized businesses increased by 0.09 percentage points compared to the previous month (0.81%), reaching 0.9%. This is lower than last February (1.02%), which was the highest level since May of last year.

Among small and medium-sized businesses, the delinquency rate for small and medium-sized corporations rose 0.1 percentage points to 0.98%, and the delinquency rate for individual business loans also increased 0.07 percentage points to 0.78%.

The delinquency rate for large corporate loans was 0.22%, the same as the previous month (0.22%), but up 0.09 percentage points from April of last year.

The household loan delinquency rate rose 0.02 percentage points to 0.42%.

The delinquency rate for home mortgage loans rose by 0.01 percentage points to 0.3%, and the delinquency rate for household loans, including credit loans, increased by 0.07 percentage points to 0.83%.

The Financial Supervisory Service said, “High prices and high exchange rates continue due to the war in the Middle East, and internal and external uncertainties such as rising market interest rates remain,” and added, “We will strengthen monitoring and encourage banks to proactively expand their loss absorption capacity.”

He went on to say, “We will encourage banks to adjust their own debt for vulnerable borrowers.”