Monday, November 29

Bank submits next year’s household loan management goal to authorities… “4-5% level”

Major commercial banks today (26th) submitted a goal to the financial supervisory authority to manage the growth rate of household loans next year at a certain level.

According to the financial industry, banks received a request from the Financial Supervisory Service on the 17th to submit their target for managing the total amount of household loans for next year by this day.

Usually, the government’s work to converge the household loan management plan took place in December, but the bank explained that it started a little earlier than usual.

Each bank was reluctant to disclose the growth rate management target determined through an internal meeting, saying, “As the authorities suggested 4 to 5 percent as a guideline for growth rate next year, we submitted it accordingly.”

Based on previous years, it is expected that the authorities will confirm the bank’s year-round household loan management plans and goals, then communicate their opinions and coordinate with the banks in the future.

A commercial bank official explained, “Usually, when a household loan plan for the next year is submitted in December, the authorities give feedback such as ‘the target growth rate is too high’ and go through the process of adjusting it again.”

The Financial Supervisory Service (FSS) also presented guidelines for the growth rate of household loans for next year and required non-banking sectors to submit management goals.

The savings bank plans to submit to the authorities a plan and target (increase rate) for managing the total amount of household loans for next year by the end of this month.

Full-time credit card companies and life insurance companies were notified to submit total management goals at the end of this month and early next month, respectively.

The total amount management target guideline presented to each company by the Financial Supervisory Service differs depending on the industry, and in the case of the insurance industry, it was given at 4%.

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