Delinquency ratio on bank loans up in July on decrease in resolved loans
The headquarters of Financial Supervisory Service (FSS) in Yeouido, Seoul / Yonhap
The delinquency ratio on loans extended by banks in Korea increased in July from a month earlier due to a decrease in the volume of resolved loans, preliminary data showed Tuesday.
The delinquency ratio on banks' won-denominated loans came to 0.39 percent as of end-July, up 0.04 percentage point from a month earlier, according to the Financial Supervisory Service (FSS).
The figure was up 0.17 percentage point from a year earlier.
The ratio reflected loans overdue by at least one month in principal and interest payment.
The ratio of newly overdue loans in July was the same from the previous month at 0.09 percent. The value of newly overdue loans was 2 trillion won ($1.5 billion).
But the volume of resolved loans fell 2 trillion won on-month to 1.1 trillion won as banks usually dispose loans at the end of a quarter.
The delinquency ratio for corporate loans rose 0.04 percentage point on-month to 0.41 percent in July, and the figure for households went up 0.03 percentage point to 0.36 percent.
The FSS said the banks' delinquency ratio is lower compared with the long-term monthly average of 0.78 percent tallied from 2010 to 2019, but it will keep encouraging the banks to manage their financial soundness amid the global economic slowdown. (Yonhap)