Delinquency ratio on bank loans up in Oct. on higher interest rates

SEOUL– The delinquency ratio on loans extended by banks in South Korea rose in October amid rising interest rates, data showed Thursday.

The delinquency ratio on banks’ won-denominated loans came to 0.24 percent as of end-October, up 0.03 percentage point from a month earlier, according to the preliminary data from the Financial Supervisory Service (FSS).

Compared with a year earlier, the figure was down 0.01 percentage point.

The ratio reflected loans overdue by at least one month in principal and interest payment.

The rise came as borrowing costs have been rising fast in line with the Bank of Korea (BOK)’s move to sharply hike the benchmark interest rate to tame soaring inflation.

Household and corporate delinquency ratios were both up in October from a month earlier, rising 0.03 percentage point, respectively, to 0.22 percent and 0.26 percent, according to the data.

Source: Yonhap News Agency

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