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Delinquency ratio on bank loans down in Sept. on beefed-up monitoring on unpaid payment

12:00 November 16, 2022

SEOUL, Nov. 16 (Yonhap) -- The delinquency ratio on loans extended by banks in South Korea declined in September as they beefed up efforts to monitor and reduce payment in arrears, data showed Wednesday.

The delinquency ratio on banks' won-denominated loans came to 0.21 percent as of end-September, down 0.03 percentage point from a month earlier, according to the preliminary data from the Financial Supervisory Service (FSS).

On a year-on-year basis, the figure was also down 0.02 percentage point.

The ratio reflected loans overdue by at least one month in principal and interest payment.

Borrowing costs have been spiking in line with the central bank's series of rate hikes to combat inflation. Banks have beefed up monitoring on interest payments overdue amid worries that the delinquency ratio could rise.

The delinquency ratio on household loans was down 0.01 percentage point on-month to 0.19 percent at the end of September.

The figure for corporate loans came to 0.23 percent, down 0.04 percentage point from a month earlier, the data showed.

This file photo, taken Oct. 3, 2021, shows signs about a bank's loan programs that were put up on the exterior of a lender in Seoul. South Korea's financial regulator is reviewing further tightening rules on household loans in a bid to curb the fast growth of household debt. (Yonhap)


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