In order to curb the skyrocketing amount of household loans, the limit of personal bank credit is reduced to the level of the annual salary.
The Financial Supervisory Service (FSS) said on the 13th that it had a meeting with credit executives of commercial banks and requested that the personal limit of credit loans, such as negative bankbooks, be lowered to the level of annual income.
Currently, commercial banks' credit limit is 1.5 to 2 times their annual income.
The reason the financial authorities requested a reduction in the credit limit is because household loans continue to expand and the growth rate is seldom caught.
Last month, the balance of household loans increased by 15.2 trillion won, up 10% from the same month of the previous year, of which 9.7 trillion won in the banking sector alone.
Among the household loans in the banking sector, mortgage loans continue to increase mainly on cheonsei loans and group loans, but since these are real-demand loans, it is difficult to reduce them in a short period of time.
On the other hand, demand for credit loans surged due to the enthusiasm for investment in stocks, especially assets such as subscriptions for public offerings.
Other loans, including credit loans, surged 7.7 trillion won in the last week of July alone due to the recent subscription for public offering shares such as Kakao Bank.
Last year, even after the financial authorities requested that the credit loan be reduced to twice the annual income, the number of credit loans continued to rise, so they requested the reduction of the limit again.