S.Korean banks' loan delinquency ratio hits record low in Q3
Source: Xinhua | 2020-11-27
South Korean banks' loan delinquency ratio hit a record low in the third quarter owing to the record-low borrowing cost, financial watchdog data showed Thursday.
The ratio of bank loans, overdue at least three months, reached a fresh low of 0.65 percent of the total at the end of September, down 0.06 percentage points from three months earlier, according to the Financial Supervisory Service.
It came as the country's central bank cut its target rate by 25 basis points to an all-time low of 0.50 percent in May. The central bank slashed the key rate by 50 basis points in March.
Amid the prolonged low-rate trend, the bad debt ratio declined to the all-time low though households rushed to borrow money. Household debts hit a new high in the third quarter.
The ratio of delinquent loans to households stood at 0.23 percent of the total at the end of September, down 0.02 percentage points from three months earlier.
Delinquency ratio for corporate loans retreated 0.07 percentage points to 0.92 percent in the cited period.
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