S.Korean banks' corporate lending growth hits record high in April

Source: Xinhua | 2020-05-13

South Korean banks' corporate lending growth hit a record monthly high in April as the COVID-19 outbreak increased loan demand from companies to secure short-term liquidity, central bank data showed Tuesday.

Debts, owed by companies to banks, reached 929.2 trillion won (758.2 billion U.S. dollars) as of the end of April, up 27.9 trillion won (22.8 billion U.S. dollars) from a month earlier, according to the Bank of Korea (BOK).

It was the biggest monthly expansion since relevant data began to be compiled in June, 2009. In March, the banks' corporate lending increased 18.7 trillion won (15.3 billion U.S. dollars).

The rapid growth came as companies rushed to secure short-term liquidity to brace for the economic fallout from the COVID-19 outbreak across the world.

Policy loan lenders and banks increased lending to small companies and microbusiness owners as the government announced plans to financially support the small businesses that were hit by the coronavirus pandemic.

Banks' lending to small and medium-sized companies, including the self-employed microbusiness owners, jumped 16.6 trillion won (13.5 billion U.S. dollars) in April, while lending to big corporations advanced 11.3 trillion won (9.2 billion U.S. dollars).

Both the hikes in lending to small and big companies hit record monthly highs last month.