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Next year, household loans from the second financial sector will become more difficult

The financial authorities are expected to lower the target for the growth rate of household loans for next year to the second financial sector such as savings banks, insurance companies, and credit card companies to prevent the household loan balloon effect.

According to the financial industry on the 28th, the Financial Supervisory Service recently presented guidelines for the growth rate of household loans for next year to the second financial sector, and required them to submit management goals for next year from the end of this month to the beginning of next month.

In this process, it is reported that the guideline for next year’s growth rate was presented differentially according to the characteristics and size of each financial company’s business area.

In the case of savings banks, which had a target growth rate of 21.1% this year, it is known that each company received an increase rate of 10.8 to 14.8% as a guideline for next year.

It also included an order that the growth rate of high-interest loans, excluding medium-interest loans, should be within 5.4%. This is the same level as this year.

Complaints are emerging from the second financial sector right now. This is because the target is lower than that of banks, and the total amount of medium-interest-rate loans, which serves as a source of funds for low- and mid-credit borrowers, is included in the total amount regulation. Even in 2019, the amount of medium-interest loans was not included in the subject of total volume regulation.

The insurance industry is also concerned that the total loan limit will be lowered next year. The Financial Supervisory Service is known to have presented insurance companies with a guideline of the low 4% level, similar to this year. It also notified each company to submit management goals by the beginning of next month. In addition, they demanded a plan to manage the total amount of mortgage loans, credit loans, and insurance contract loans (loans under terms and conditions).

The Financial Supervisory Service is also conducting preliminary discussions with credit card companies, including credit card companies, to determine the target for managing the total amount of loans for next year.

Based on the growth rate of 6-7%, which is the same level as this year’s target, we requested that each company submit its opinions on the total amount management target by the 29th of this month. If it is decided according to the government’s policy, it is expected that it will be more difficult for medium- and low-credit borrowers, who are the main customers of loans from the second financial sector, to borrow money next year.

On the other hand, the mutual financial sector, which suffered a loan suspension because the increase in household loans this year exceeded the target, is sparingly speaking about the guidelines presented by the authorities. The target for this year’s growth rate for the mutual financial sector was 4.1%, but considering other industries, it is expected to be lower than this next year.

Kim Joo-oh

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