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Central bank's loans to local lenders top 20 tln won

All News 11:41 October 10, 2016

SEOUL, Oct. 10 (Yonhap) -- Loans extended by South Korea's central bank to local lenders hit a record monthly high last month, the central bank said Monday.

The loans to local banks came to 20.23 trillion won (US$18.1 billion) as of end-September, up 342.1 billion won from a month earlier, according to the Bank of Korea.

Central bank's loans to local lenders top 20 tln won - 1

The monthly amount is the highest since 1971, when the central bank collected data on loans to local lenders. It also marked the first time that the monthly amount has surpassed 20 trillion won.

The BOK's loans to local lenders stood at 13 trillion won in November 2009 following the 2008 global economic crisis.

The BOK's lending has been on the rise since 2014, when the central bank increased loans to local lenders, which are meant to support small and medium-sized firms.

The loans are extended to local lenders at a low interest rate of between 0.5 percent and 0.75 percent, but are earmarked for lending to small and medium-sized firms.

The BOK raised the ceiling for loans to local lenders, which are designed to provide liquidity for small and medium-sized firms, by 5 trillion won to 25 trillion won in May.

entropy@yna.co.kr
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