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S.Korean banks' loan delinquency ratio hits record low in September

SEOUL
2021-11-11 15:54

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SEOUL, Nov. 11 (Xinhua) -- South Korean banks' loan delinquency ratio hit a record low in September owing to the near-record-low policy rate, financial watchdog data showed Thursday.

The ratio of bank loans, overdue at least one month, came in at 0.24 percent of the total at the end of September, according to the Financial Supervisory Service.

It was down 0.05 percentage points from a month earlier, logging the lowest since data began to be compiled.

The country's central bank raised its benchmark interest rate from an all-time low of 0.50 percent to 0.75 percent in August, but the policy rate remained near the record-low level.

The newly delinquent loan stood at 800 billion won (676 million U.S. dollars) in September, down 200 billion won (169 million U.S. dollars) from the previous month.

The resolved non-performing loan amounted to 1.7 trillion won (1.4 billion U.S. dollars) in September, up 1 trillion won (845 million U.S. dollars) from the prior month.

The delinquency ratio for bank loan to households declined 0.02 percentage points from a month earlier to 0.17 percent at the end of September, while the ratio for corporate loan slipped 0.06 percentage points to 0.30 percent.
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