ID :
28875
Fri, 11/07/2008 - 13:44
Auther :
Shortlink :
https://www.oananews.org//node/28875
The shortlink copeid
Growth of bank loans to firms picks up in October
SEOUL, Nov. 6 (Yonhap) -- The growth of South Korean bank loans accelerated in October as lending to larger companies expanded at the fastest pace in almost eight years, the central bank said Thursday.
As of the end of October, outstanding bank loans to large and smaller firms
totaled 463.1 trillion won (US$352.4 billion), up 7.5 trillion won from a month
earlier, the Bank of Korea (BOK) said. The growth of corporate lending also
picked up in October from a 5 trillion won gain in September.
"Bank lending to smaller companies increased on the back of the government's
measures to provide liquidity to such firms," said Lee Dae-kun, a BOK official.
"Large companies also raised loan demand as they tried to secure working funds in
advance and the market for corporate debts remained sluggish amid a credit
crunch."
Lending to larger companies increased by 5 trillion won to 61.6 trillion won. The
October figure reflected the largest monthly growth since 2001 when the BOK began
to compile related data. Lending to small- and medium-sized enterprises (SME)
advanced by 2.6 trillion won to 401.5 trillion won, the BOK said.
In early October, the government said it will extend liquidity of about 4.3
trillion won to SMEs in a bid to help them ease cash shortages amid global
financial turmoil.
Meanwhile, household loans increased by 1.4 trillion won last month to 385
trillion won, slowing from a 2.1 trillion won advance in September.
The growth of bank deposits hit a 6-month high in October as local lenders sold
more products carrying higher-than-average interest rates and the stock market
slumped, the BOK said.
Bank deposits grew by 21.8 trillion won on-month to an outstanding 908.8 trillion
won in October. In April, they expanded 22.8 trillion won.
The data came a day before the BOK holds its monthly rate-setting meeting.
Economists say the BOK is widely expected to cut its key interest rate by a
quarter percentage point to 4 percent following last week's largest-ever cut to
stimulate the country's cooling economic growth.
Last week, the BOK slashed the benchmark 7-day repo rate by a record 0.75
percentage point to 4.25 percent in a move to keep global financial turmoil from
sharply slowing the real economy.
As of the end of October, outstanding bank loans to large and smaller firms
totaled 463.1 trillion won (US$352.4 billion), up 7.5 trillion won from a month
earlier, the Bank of Korea (BOK) said. The growth of corporate lending also
picked up in October from a 5 trillion won gain in September.
"Bank lending to smaller companies increased on the back of the government's
measures to provide liquidity to such firms," said Lee Dae-kun, a BOK official.
"Large companies also raised loan demand as they tried to secure working funds in
advance and the market for corporate debts remained sluggish amid a credit
crunch."
Lending to larger companies increased by 5 trillion won to 61.6 trillion won. The
October figure reflected the largest monthly growth since 2001 when the BOK began
to compile related data. Lending to small- and medium-sized enterprises (SME)
advanced by 2.6 trillion won to 401.5 trillion won, the BOK said.
In early October, the government said it will extend liquidity of about 4.3
trillion won to SMEs in a bid to help them ease cash shortages amid global
financial turmoil.
Meanwhile, household loans increased by 1.4 trillion won last month to 385
trillion won, slowing from a 2.1 trillion won advance in September.
The growth of bank deposits hit a 6-month high in October as local lenders sold
more products carrying higher-than-average interest rates and the stock market
slumped, the BOK said.
Bank deposits grew by 21.8 trillion won on-month to an outstanding 908.8 trillion
won in October. In April, they expanded 22.8 trillion won.
The data came a day before the BOK holds its monthly rate-setting meeting.
Economists say the BOK is widely expected to cut its key interest rate by a
quarter percentage point to 4 percent following last week's largest-ever cut to
stimulate the country's cooling economic growth.
Last week, the BOK slashed the benchmark 7-day repo rate by a record 0.75
percentage point to 4.25 percent in a move to keep global financial turmoil from
sharply slowing the real economy.
