Loans to households from banks in Korea rose for the second consecutive month in May, but at a slower pace than a month earlier amid rising borrowing costs, data from the Bank showed on Friday. central bank.
Outstanding household loans from banks stood at 1,060.6 trillion won ($838.41 billion) at the end of May, up 400 billion won from the previous month, data showed. the Bank of Korea.
It was the second consecutive month of increases, but the amount rose at a slower pace than a month earlier, when the corresponding figure rose by 1.2 trillion won.
During the January-May period, outstanding household loans contracted by 100 billion won from a year earlier.
Loans to households from financial firms, including nonbanks, rose 1.8 trillion won month on month in May, according to separate data from the Financial Services Commission and the Financial Supervisory Service.
Borrowing costs rose as the central bank raised its policy rate at a rapid pace to ease inflationary pressure. Last month, the central bank raised the rate by a quarter of a percentage point, the fifth increase since August last year.
Bank mortgages rose 800 billion won in a month to reach 787.6 trillion won at the end of May. The monthly increase, however, was lower than a 2 trillion won increase a month earlier.
Their lending, mostly unsecured lending, fell by 500 billion won to 271.6 trillion won at the end of May, the data showed.
Banks’ business loans, meanwhile, rose for the fifth straight month in May as businesses scrambled to secure operating funds amid the pandemic.
Their corporate loans stood at 1.119.2 trillion won at the end of May, up 13.1 trillion won from the previous month, the data showed. The growth compared to the rise of 12.1 trillion won the previous month.