As the financial authorities began to tighten household debt, we decided to strengthen monitoring of banks and the CEO's responsibilities next year to prevent a 'loan suspension' or 'first-come-first-served loan' situation like this year.
This is due to aggravating difficulties for financial consumers, such as 'queue for loans' every quarter or month as the total loan amount management becomes tight due to the strengthening of household debt management this year.
According to the financial industry on the 31st, the Financial Services Commission and the Financial Supervisory Service lowered the growth rate of household debt to the 4-5% level next year, and the CEO of financial companies was concerned about the possibility of a repeat of 'first-come-first-served loans' at commercial banks. We plan to actively provide guidance to ensure a stable supply of loans on a quarterly basis.
This is because banks will have to manage household loans more tightly than this year in order to meet their household debt growth target next year.
For this reason, the financial authorities demanded that commercial banks prepare and submit a thorough plan so that annual loans can be made without interruption.
In particular, when submitting a household debt management plan for each financial company, reporting to the CEO and the board of directors is mandatory, so that the CEO takes responsibility and prevents the 'first-come-first-served loan' situation.
He also ordered that Shinhan Bank be benchmarked by sharing cases of financial companies that have managed annual loans well this year.
In the case of financial companies such as banks, annual loans are managed quarterly, but in reality, they are exhausted at the beginning of the year and the loans are blocked at the end of the year.
NH Nonghyup Bank stopped selling new secured loans, including jeonse loans, at the end of August when the growth rate of household debt exceeded the 7% range.
Accordingly, the financial authorities will strengthen monitoring not only quarterly, but also monthly or ad hoc, and will take sanctions through inspections by the Financial Supervisory Service, etc.
On the 26th, Koh Seung-beom, chairman of the Financial Services Commission, said in response to concerns about 'loan suspension' or 'first-come-first-served loan', "We will distribute loans evenly on a quarterly basis so that there is no interruption."
An official from the financial authorities said, “In the case of Nonghyup Bank, the loan limit was exhausted in the first half of this year.
The official said, "The purpose is to take the exemplary loan management system like Shinhan Bank as a case and manage it well."
He said, "Of course, this may change depending on the economic situation, but I will tell you to make a plan and submit it properly so that you do not miss the annual loan management goal by simply dividing it by 1/12. added.
Other officials are also concerned about the distribution of next year's loan volume, "We leave it up to the bank to take care of it, but we continue to check it monthly,” he said.
Previously, the Financial Services Commission announced the household debt management plan on the 26th and decided to significantly accelerate the implementation period of the DSR regulation for each borrower (by individual) by stage.
The 'DSR 40% per individual' regulation will be applied early when the total loan exceeds KRW 200 million from January next year, and when the total loan exceeds KRW 100 million from July next year.
This means that DSR is applied not only to apartments, but also to non-housing mortgage loans such as officetels, shopping malls, and land, increasing the loan burden for asset owners and investors, except for end-users who need a jeonse loan.
(Photo = Yonhap News)