S.Korean banks' household loan keeps growing in September

Source: Xinhua| 2021-10-13 13:44:51|Editor: huaxia
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SEOUL, Oct. 13 (Xinhua) -- South Korean banks' household loan kept growing in September despite the policy rate hike, central bank data showed Wednesday.

Debt, owed by households to banks, reached 1,052.7 trillion won (881.6 billion U.S. dollars) at the end of September, up 6.5 trillion won from a month earlier, according to the Bank of Korea (BOK).

The debt growth was faster than an increase of 6.1 trillion won in August despite the higher borrowing cost.

The BOK raised its benchmark interest rate from an all-time low of 0.50 percent to 0.75 percent in late August.

Demand for mortgage loan remained strong as households rushed to purchase new home with borrowed money.

Home-backed loan, extended by banks to households, gained 5.7 trillion won from a month earlier to 769.8 trillion won as of end-September.

Credit loan growth amounted to 800 billion won in September, higher than an increase of 300 billion won in August. (1 U.S. dollar equals 1,195.23 won) Enditem

KEY WORDS: South Korea,Household Loan