Savings banks and credit card companies, the second-largest financial sector, have mixed reactions to the total amount of household loans to be applied to mid-interest loans in the second half of the year. Savings banks are worried that mid-interest loans, a filial product, have met a reef, but credit card companies are responding that they will use it as an opportunity.
According to the financial sector on the 4th, the Financial Supervisory Service recently asked savings banks to manage the total growth rate of household loans this year to within 21.1% year-on-year. The figure is a percentage of KRW 5.5 trillion in household loans increased by savings banks last year.
Savings banks look perplexed as they are no longer able to handle loans than last year. This is because savings banks, which expanded mid-interest loans by 14-16% per year last year, have seen a significant improvement in their performance.
Savings banks'balance of mid-interest loans rose about 7 trillion won to 10.3 trillion won in the wake of COVID-19 last year from 4.6 trillion won in 2019.
As the balance of loans increased, the net profit of savings banks also increased. The net profit of large savings banks surged 67.7% on-year in the first quarter of this year. SBI Savings Bank, the industry's No. 1, posted net profit of KRW 86.5 billion in the first quarter of this year, up 27.0% from a year earlier. OK Savings Bank posted a net profit of 77.6 billion won, up 96.5% from the same period last year. Pepper Savings Bank, which recorded a deficit in the first quarter of last year, turned to the black with a net profit of 15.2 billion won in the first quarter of this year.
For savings banks that used to handle a lot of high-interest loans, the risk of mid-interest loan demanders is lower. As a result, it is analyzed that it has established itself as a stable source of income even though it does not take a long time to deal 폰테크 with mid-interest loans. An official at a savings bank said, "The upper limit on mid-interest lending rates is not low at 19.5%," adding, "It has become a solid source of revenue for savings banks.".
However, starting next year, the savings bank's mid-interest rate cap should be applied to 16%, 3.5 percentage points lower than the current one. Savings banks are also subject to total regulatory management. This is why there are concerns in the savings bank industry about worsening business conditions.
The Financial Supervisory Service is expected to order not only savings banks but also credit card companies and mutual finance to regulate the total amount of loans in the future. But the card company responded that there is no big problem.
Even if credit card companies are included in the mid-interest loan management list in the future, mid-interest loans account for only 2.2% of credit loans, which will not be affected much. Compared to 48.3% of the savings bank's mid-interest loans, it is weak