Household Loan Cap Tightening Pushes Top Five Korean Banks Below Q1 Targets

Amid a stronger push by financial authorities to manage total household lending, South Korea’s five major banks saw their first-quarter household loans generally decline versus their annual targets. The negative performance against targets suggests that loan expansion across the banking sector slowed in the first quarter. The shift came as regulators reinforced household debt management, and major banks appear to have taken a more conservative approach to lending in line with volume control standards. Going forward, the pace of household loan growth may continue to be adjusted depending on regulatory policy and each bank’s target management. Source: yna.co.kr