Bank loan delinquency rate is the highest in over 5 years… Following small and medium-sized enterprises, large corporations are also showing rapid growth – Invest Chosun

• Last February, the bank’s loan delinquency rate hit 0.51%. This is the highest figure since May 2019 (0.51%), and it is the first time in 4 years and 9 months that the delinquency rate has exceeded the 0.5% level.

  According to the Financial Supervisory Service on the 24th, as of the end of February, the delinquency rate of domestic banks’ won-denominated loans (based on principal and interest overdue for more than one month) recorded 0.51%, up 0.06 percentage points from the end of the previous month (0.45%). The amount of new delinquency in February was 2.9 trillion won, and the amount of delinquent receivables settled was 1.3 trillion won. The new delinquency rate was 0.13%, the same as the previous month.

  By sector, the increase in the delinquency rate (0.59%) of corporate loans was notable. The corporate loan delinquency rate increased by 0.09 percentage points from the end of the previous month, with the large company loan delinquency rate (0.18%) and small and medium business loan delinquency rate (0.70%) increasing by 0.06 percentage points and 0.10 percentage points, respectively. While the delinquency rate of small and medium-sized businesses is at an all-time high, the delinquency rate of large companies is also rapidly increasing.

  The household loan delinquency rate recorded 0.42%, up 0.04 percentage points from the end of the previous month (0.38%). Among these, the delinquency rate for home mortgage loans rose 0.02 percentage points to 0.27%, and the delinquency rate for household loans (credit loans, etc.) excluding home mortgage loans rose 0.10 percentage points to 0.84%.

  The Financial Supervisory Service said, “The bank delinquency rate has been on the rise since the second half of 2022, but is still low compared to the long-term average of the 10 years before the coronavirus,” and added, “In a situation where internal and external uncertainties are increasing, we will continue to expand loss absorption capacity, such as expanding loan loss reserves.” “We plan to lead it to ,” he said.

Invest Chosun Paid Service Posted at 13:48 on April 24, 2024