“Loan support, illusion effect?” Bank bad debt ratio at end-June was 0.41% ‘lowest ever’

At the end of June this year, the ratio of non-performing loans of domestic banks hit a record low of 0.41 percent.

However, there are concerns that the loan maturity extension and interest repayment grace, which took effect in April 2020, will end at the end of this month for small business owners and small businesses affected by the spread of the new coronavirus infection.

According to the Financial Supervisory Service’s “Provisional Status of Domestic Banks’ Non-performing loans at the end of June 2022,” the ratio of domestic banks’ non-performing loans stood at 0.41 percent, down 0.03 percent from the end of the previous quarter. This is the lowest ever. Compared to the end of the same month last year, it fell 0.12 percentage points.

At the end of June, the number of bad loans of domestic banks stood at 10.3 trillion won, down 500 billion won (5.1 percent) from the end of the previous quarter, the lowest ever.

Among non-performing loans, corporate credit accounted for 8.6 trillion won (84.8 percent), followed by household credit (1.5 trillion won) and credit card credit (100 billion won).

The number of new non-performing loans raised in the second quarter of this year was 2.3 trillion won, up 500 billion won from the previous quarter (1.8 trillion won). 2022 소상공인 대출 This is analyzed as the underlying effect of a significant decrease in new defects in the first quarter. The Financial Supervisory Service explained that the figure decreased by 300 billion won from the same period last year (2.6 trillion won).

The number of corporate credit delinquents stood at 1.7 trillion won, up 500 billion won from 1.2 trillion won in the previous quarter. The number of new household credit failures was estimated at 500 billion won, similar to the previous quarter.

The proportion of corporate credit delinquents stood at 0.55 percent, down 0.06 percent from the end of the previous quarter (0.62 percent). Among them, the ratio of credit delinquency for large companies (0.67 percent) and the ratio of credit delinquency for small and medium-sized companies (0.50 percent) fell 0.14 percentage points and 0.03 percentage points respectively from the previous quarter. The ratio of non-performing loans to individual businesses fell 0.01 percent from the previous quarter to 0.19 percent.

The ratio of household credit delinquency loans was 0.17 percent, the same as at the end of the previous quarter. Mortgage loans rose 0.02 percentage points to 0.30 percent, up 0.11 percent from the end of the previous quarter.

The ratio of credit card receivables to non-performing loans stood at 0.87 percent, the same level as at the end of the previous quarter.

Commercial banks account for 3 trillion won in bad loans and 0.22 percent in bad loans. Shinhan Bank ranked first with 810 billion won (0.26 percent), followed by Hana Bank with 750 billion won (0.24 percent), KB Kookmin Bank with 680 billion won (0.19 percent), Woori Bank with 560 billion won (0.19 percent), Citibank with 110 billion won (0.54 percent), and SC First Bank with 90 billion won (0.17 percent).

The number of new non-performing loans raised in the second quarter of this year was 2.3 trillion won, up 500 billion won from 1.8 trillion won in the previous quarter).

The amount of liquidation of non-performing loans stood at 2.9 trillion won, 토트넘 세비야 중계 up 100 billion won from the previous quarter. Depreciation and sale of bad debts amounted to 1.3 trillion won, 800 billion won in credit collection through collateral disposal, 600 billion won in credit normalization, and 100 billion won in investment conversion.

The reason why the ratio of non-performing loans in the banking sector has fallen to the lowest level in history is the effect of COVID-19 lending support measures. However, some predict that bad loans will emerge if the support measures are completed only this month, given the potential for bad loans.

Meanwhile, the reserve ratio for bad debts stood at 205.6 percent as of the end of June, up 24 percentage points from 181.6 percent at the end of the previous quarter. It jumped 39.7 percentage points from 165.9 percent at the end of last year.

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