SEOUL, Sept. 19 (Yonhap) — The delinquency ratio on loans extended by banks in South Korea rose in July from the prior month as the volume of resolved loans decreased, according to preliminary data released Tuesday.
The delinquency ratio on banks’ won-denominated loans was 0.39 percent at the end of July, an increase of 0.04 percentage points from June, the Financial Supervisory Service (FSS) said.
The figure was 0.17 percentage points higher than the same period last year.
The ratio measures loans overdue by at least one month in principal and interest payment.
The ratio of newly overdue loans in July was unchanged from June at 0.09 percent. The value of newly overdue loans was 2 trillion won (US$1.5 billion).
But the volume of resolved loans dropped 2 trillion won month-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 points month-on-month to 0.41 percent in July, and the figure for households went up 0.03 percentage points 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.
The logo of the Financial Supervisory Service provided by the agency (PHOTO NOT FOR SALE) (Yonhap)
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