Increase threshold for household loans in 2nd financial sector due to 'balloon effect'

[Anchor]
As the threshold for household loans in the banking sector rises, demand for loans is flocking to the second financial sector.

This month alone, it has increased by nearly KRW 1 trillion, and the second financial sector is also tightening loans to block this balloon effect.

Reporter Lee Hyung-won reports.

[Reporter]
The size of household loans has been slowing down since peaking in August.

The increase in mortgage loans by the five major banks was only around 400 billion won this month.

It is insignificant compared to August, when it reached nearly 9 trillion won, or September, when it increased by nearly 6 trillion won.

Tightening DSR regulations reduce lending limits,
This is the result of the
banking sector raising its own threshold, such as raising the additional interest rate.

These all-round regulations are further expanded.

The government also asked the second financial sector to crack down on loans.

This is due to the "balloon effect" in which demand for loans blocked in the banking sector flows to the second financial sector.

In fact, the increase in mortgage loans this month in the mutual financial sector is expected to reach KRW 1 trillion.

[Lee In-cheol / Director of the Economic Research Institute: In the case of commercial primary financial institutions, most of them are now unable to give out more loans because the total amount limit is full this year, so since the policy prohibition also prohibits loans, the number of loans from secondary financial institutions is increasing...]

Under pressure from financial authorities, the National Agricultural Cooperative Federation has also decided to tighten mortgage loans.

Collective loan screening will be strengthened immediately, and restrictions on loans in the metropolitan area will be implemented from the 5th of next month.

If the balloon effect increases even with such measures, the government is expected to take additional measures, such as strengthening DSR regulations in the second financial sector.

I'm Lee Hyungwon of YTN.

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video: Eunkyung Lee
Graphic: Lee Na Eun