42416
S. Korea Household Debt Dips
World Economy

S. Korea Household Debt Dips

The ratio of South Korea’s household debt borrowed by local banks dipped to the lowest-ever level as stricter screening regulations prompted more people to take out loans from nonbanking lenders, data showed Saturday, Yonhap reported. The private sector debt, excluding credit card spending, tallied at 569.3 trillion won ($482.5 billion) at end-March, and loans by local banks accounted for 49.1% of the total, the Bank of Korea said. It is the lowest since the fourth quarter of 2002 when the central bank first released the household debt data. The ratio has steadily risen from 53.3% in late 2002 to 60.1% in late 2006. It fell to 49.9% in the first quarter of 2014, sinking below the threshold 50% for the first time. The ratio of bank loans shrank as more people took out debts from nonbanking lenders, including insurance companies, financial companies, credit unions and loan sharks. The government toughened mortgage loan screening in February on rising concerns over the fast-rising household debt, prompting low-income families and those with bad credit to make a detour to nonbanking lenders.

 

Short URL : http://goo.gl/VyTrko
  1. http://goo.gl/eVZJ4P
  • http://goo.gl/mPED3V
  • http://goo.gl/Aq76JT
  • http://goo.gl/D8rWW6
  • http://goo.gl/M32xho

You can also read ...

Outlook for Global Economy, Equity Markets Brighter
Ebrahim Rahbari remains positive on the global economy and...
Brazil August Growth Lowest in Five months
Economic activity in Brazil contracted in August at the...
OECD: Youth Likely to Face Higher Inequality in Old Age
Younger generations have been experiencing more unstable labor...
Singapore Exports See Surprise Drop
Exports from Singapore last month stumbled after four months...
Low ECB Rates an Opportunity to Reform
Easy monetary policy gives eurozone governments a window of...
UN Expert Says: IMF, WB Looking More Like Failed Institutions
The lending policies of the International Monetary Fund are...
S. Korea Money Supply Up 9.1%
The money supply in South Korea jumped 9.1% in August from a...
Czech Economy Needs Higher Rates
The Czech koruna’s slow appreciation is paving the way for...

Trending

Googleplus