S.Korean banks’ household loan keeps growing in August

South Korean banks’ household loan kept growing last month as the policy rate remained at a low level, central bank data showed Wednesday.

Debt, owed by households to banks, reached 1,046.3 trillion won ($897.9 billion) as of the end of August, up 6.2 trillion won ($5.3 billion) from a month earlier, Xinhua news agency reported, citing the Bank of Korea (BOK).

It was down from an increase of 9.7 trillion won ($8.3 billion) in July, but the household debt continued to rise amid the still low policy rate.

The BOK raised its benchmark interest rate last month to 0.75 per cent from an all-time low of 0.50 per cent, marking the first rate hike in 33 months.

Mortgage loan to households expanded 5.9 trillion won ($5.1 billion) to 763.2 trillion won ($654.9 billion) in August, and credit loan gained 300 billion won ($257.4 million) during the month.

Banks’ corporate loan came in at 1,041.3 trillion won ($893.6 billion) at the end of August, up 7.9 trillion won ($6.8 billion) from a month earlier.

It was the fastest August growth since relevant data began to be compiled in June 2009.