Korean financial institutions’ home-backed loan growth accelerates in Q3

The quarterly growth of Korean financial institutions’ home-backed loans accelerated in the third quarter from three months earlier as bank lending for home purchases rebounded, the financial watchdog said Wednesday (Oct. 17).

According to the Financial Supervisory Service (FSS), home-backed loans extended by financial institutions increased 3.2 trillion won ($3.48 billion) in the July-September period from three months earlier, after rising 2.3 trillion won on-quarter in the preceding three-month period. However, the third-quarter gain was a sharp drop compared with the same period of last year, when home-backed loans surged 7.7 trillion won on-quarter in line with surging property prices.

The data comes as the central bank scrambles to curb high liquidity growth fueled party by loans to households and businesses.
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