Bank household loans grow fastest pace in 14 months

Household loans at deposit-taking financial firms grew at the fastest rate in 14 months in August in the wake of the government's easing of rules on mortgage loans to boost the property market, the central bank said Monday.

According to the Bank of Korea (BOK), household lending by banks and non-banking institutions increased 6.3 trillion won to a record high of 717.2 trillion won on-month in August. The rise marked the largest on-month increase since a 6.5 trillion won gain tallied in June last year.

The August sum represents an increase of 6.9 percent or 46.4 trillion won from a year earlier.

Beginning Aug. 1, the government relaxed the regulations on loan-to-value (LTV) and debt-to-income (DTI) ratios to help home buyers borrow more.

Park Sae-jin swatchsjp@ajunews.com

Bank household loans grow fastest pace in 14 months

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