Household Loans at Five Major Commercial Banks Rise by Over 1 Trillion Won in Five Months..."Driven by Rebound in Mortgage Lending"

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\r\n\r\n[Financial News] Household loans at the five major commercial banks rose by more than 1.2 trillion won last month. The increase was driven by a gain of more than 1 trillion won in mortgage loans and over 100 billion won in credit loans.
According to the financial sector on the 1st, the household loan balance at the five major commercial banks (KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and Nonghyup Bank) stood at 766.9552 trillion won as of the 29th of last month. That was 1.2262 trillion won higher than the 765.729 trillion won recorded at the end of March.
Household loans at the five major commercial banks have fluctuated this year. They rose slightly from 765.8131 trillion won at the end of January to 765.8655 trillion won at the end of February, then fell to 765.729 trillion won at the end of March. They turned upward again in April. It was the first time in five months that household loans increased by more than 1 trillion won in a month, since last November.
The rise in mortgage lending is seen as the main factor behind the increase in household loan balances. As of the 29th of last month, mortgage loan balances stood at 611.3327 trillion won, up by nearly 1 trillion won in a month. That was the largest monthly increase in six months, since last October. With borrowing conditions tightening due to higher interest rates, demand for mortgages had slowed, but it has been recovering on spring moving demand.
This year's mortgage loan balances were 610.1245 trillion won at the end of January, 610.7211 trillion won at the end of February, and 610.3339 trillion won at the end of March.
Credit loan balances also continued to decline from December last year, but began rising again at the end of March this year. As of the 29th of last month, they stood at 104.8284 trillion won, up by about 170 billion won from the previous month.
Total deposit balances at the five banks have also fluctuated, showing a decline since the end of March. This is because demand deposits have swung sharply up and down. Demand deposits, including money market deposit accounts, at the five banks stood at 700.6712 trillion won as of the 29th of last month, up by about 760 billion won from 699.9081 trillion won at the end of the previous month.
\r\nDemand deposits are classified as funds waiting to be invested. As the KOSPI recently hit record highs and came close to breaking the 7,000-point mark, money appears to have moved actively before flowing back into banks at the end of the month.
Time deposit balances at the five banks came to 938.8229 trillion won, up 1.3664 trillion won from 937.4565 trillion won at the end of March. Installment savings balances were 46.564 trillion won at the end of last month, up by about 400 billion won from the previous month.
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chord@fnnews.com Lee Hyun-jung Reporter