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Delinquency ratio on bank loans inches up in July

Economy 12:00 September 22, 2022

SEOUL, Sept. 22 (Yonhap) -- The delinquency ratio on loans extended by banks in South Korea inched up in July from a month earlier, but it still had remained at a record-low level on the back of state supportive measures for virus-hit small merchants, the financial watchdog said Thursday.

The delinquency ratio on banks' won-denominated loans had come to 0.22 percent as of end-July, up from an all-time low of 0.20 percent tallied a month earlier, according to preliminary data from the Financial Supervisory Service (FSS).

From a year earlier, the July figure was down 0.05 percentage point.

The ratio reflected loans overdue by one month or longer in principal and interest payment.

The delinquency ratio on household loans went up 0.01 percentage point on-month to stand at 0.19 percent as of end-July, and the figure for corporate loans came to 0.24 percent by rising 0.02 percentage point from a month earlier, according to the data.

The delinquency ratio has remained low recently, as the government has implemented various financial measures to support small businesses to ease their suffering caused by the pandemic, such as the extension of loan maturity and suspension of debt service payments.

This file photo taken July 1, 2021, shows a bank branch in Seoul. (Yonhap)

This file photo taken July 1, 2021, shows a bank branch in Seoul. (Yonhap)


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