ID :
89085
Wed, 11/11/2009 - 17:17
Auther :
Shortlink :
https://oananews.org//node/89085
The shortlink copeid
Bank home loans rebound in Oct.
SEOUL, Nov. 11 (Yonhap) -- South Korean banks' home-backed loans rebounded in
October due to a one-off factor, but tougher regulations continued to help stem
mortgage loan growth, the central bank said Wednesday.
As of the end of October, outstanding bank home loans amounted to 261.6 trillion
won (US$225.6 billion), up 1.4 trillion won from a month earlier, the Bank of
Korea (BOK) said.
"Home-backed lending rebounded last month as the securitization of home loan
assets declined compared with September," a BOK official said. "But when the
amount of the securitization is factored in, the growth of bank home loans slowed
in October from a month ago."
Lenders sold a smaller portion of their mortgage loan assets to state-run Korea
Housing Finance Corp. in October than they did in September. If this is taken
into account, home-backed lending rose by 2 trillion won last month, slowing from
a 2.4 trillion won gain in September.
"Toughened rules on home-backed lending and rising lending rates continued to
discourage people from taking housing loans from banks," he added.
In September, local banks' mortgage loans declined for the first time in more
than two years, affected by stiffened regulations on such loans.
Household loans including mortgage lending rose by 1.4 trillion won on-month to
405.6 trillion won in October, it added.
Amid record-low borrowing costs and signs of an economic recovery, demand for
mortgage lending rose in expectation of further gains in housing prices.
South Korea's financial regulator in early July toughened regulations on bank
mortgage lending by allowing lenders to extend loans amounting to up to just 50
percent of the value of a residence in Seoul and its adjacent areas, down from 60
percent. In September, the watchdog further stiffened rules on home loans by
prompting banks to make loans based on borrowers' income.
The BOK cut its key interest rate by a total of 3.25 percentage points to a
record low of 2 percent between October 2008 and February in a bid to help
bolster the slumping economy. But all-time low borrowing costs had contributed to
rising household demand for home-backed lending.
The data comes a day before the BOK makes its monthly interest-rate decision. The
central bank is widely forecast to freeze the benchmark seven-day repo rate for
the ninth straight month.
sooyeon@yna.co.kr
(END)
October due to a one-off factor, but tougher regulations continued to help stem
mortgage loan growth, the central bank said Wednesday.
As of the end of October, outstanding bank home loans amounted to 261.6 trillion
won (US$225.6 billion), up 1.4 trillion won from a month earlier, the Bank of
Korea (BOK) said.
"Home-backed lending rebounded last month as the securitization of home loan
assets declined compared with September," a BOK official said. "But when the
amount of the securitization is factored in, the growth of bank home loans slowed
in October from a month ago."
Lenders sold a smaller portion of their mortgage loan assets to state-run Korea
Housing Finance Corp. in October than they did in September. If this is taken
into account, home-backed lending rose by 2 trillion won last month, slowing from
a 2.4 trillion won gain in September.
"Toughened rules on home-backed lending and rising lending rates continued to
discourage people from taking housing loans from banks," he added.
In September, local banks' mortgage loans declined for the first time in more
than two years, affected by stiffened regulations on such loans.
Household loans including mortgage lending rose by 1.4 trillion won on-month to
405.6 trillion won in October, it added.
Amid record-low borrowing costs and signs of an economic recovery, demand for
mortgage lending rose in expectation of further gains in housing prices.
South Korea's financial regulator in early July toughened regulations on bank
mortgage lending by allowing lenders to extend loans amounting to up to just 50
percent of the value of a residence in Seoul and its adjacent areas, down from 60
percent. In September, the watchdog further stiffened rules on home loans by
prompting banks to make loans based on borrowers' income.
The BOK cut its key interest rate by a total of 3.25 percentage points to a
record low of 2 percent between October 2008 and February in a bid to help
bolster the slumping economy. But all-time low borrowing costs had contributed to
rising household demand for home-backed lending.
The data comes a day before the BOK makes its monthly interest-rate decision. The
central bank is widely forecast to freeze the benchmark seven-day repo rate for
the ninth straight month.
sooyeon@yna.co.kr
(END)
