S.Korea's MBS issuance posts double-digit growth in 2019

Source: Xinhua| 2020-01-20 11:26:42|Editor: xuxin
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SEOUL, Jan. 20 (Xinhua) -- The issuance of mortgage-backed securities (MBS) in South Korea posted a double-digit growth last year as the government increased the supply of low-rate loans for ordinary people, financial watchdog data showed Monday.

The sale of MBS, issued by the state-run Korea Housing Finance Corp. to securitize the home-backed debts owed by households to lenders, reached 28.1 trillion won (24.3 billion U.S. dollars) in 2019, up 13.3 percent from the previous year, according to the Financial Supervisory Service.

Demand for mortgage loans reduced from the first quarter to the third quarter of last year amid the government's efforts to curb speculative investment in the real estate market by tightening regulations on home-backed loans.

The MBS issuance rose sharply in the fourth quarter as the government expanded the provision of low-rate home-backed loans for ordinary people, especially the low-income bracket.

The issuance of asset-backed securities, including the MBS, amounted to 51.7 trillion won (44.6 billion U.S. dollars) in 2019, up 4.7 percent from the previous year.