Korea’s family credit score reached a file excessive within the third quarter, although its progress slowed as a consequence of tighter lending rules, central financial institution knowledge confirmed Tuesday.
Excellent family credit score had stood at 1,968.3 trillion received ($1.34 trillion) as of end-September, up 14.9 trillion received from three months earlier, in response to the preliminary knowledge from the Financial institution of Korea (BOK).
The studying marks the very best for the reason that BOK started compiling related knowledge in 2002.
It additionally marks the sixth consecutive quarterly improve, although the expansion slowed sharply from a 25.1 trillion-won rise within the second quarter.
Family credit score refers to credit score purchases and loans given to households by monetary establishments.
Intimately, family loans stood at 1,845 trillion received on the finish of September, up 12 trillion received from three months earlier. Of the overall, mortgage lending rose 11.6 trillion received to 1,159.6 trillion received, slowing from a 14.4 trillion-won improve within the earlier quarter.
Credit score purchases climbed 3 trillion received on-quarter to 123.3 trillion received, accelerating from a 1.5 trillion received rise within the second quarter.
“The rise in credit score purchases was pushed by heightened summer time vacation spending and higher demand for paying property taxes,” BOK official Kim Min-soo advised a press briefing.
“General, the slower progress in family credit score was largely attributable to authorities rules. The extra measures introduced in October to ease situations within the property market are anticipated to assist stabilize the tempo of mortgage lending,” he added.
The federal government has carried out a sequence of measures to chill the overheated housing market and curb family debt. Underneath the most recent coverage package deal introduced on Oct. 15, the federal government designated 21 further districts in Seoul as speculative zones, bringing all 25 districts within the capital below stricter rules.
The measures additionally tightened lending guidelines, decreasing the cap on mortgage loans to as little as 200 million received, down from the 600 million-won restrict set in June.
