Loan delinquency ratio of Korean banks up in July

The loan delinquency ration of South Korean banks was up in July on account of seasonal factors, according to the Financial Supervisory Service .

The rate of bad loans against the total bank loans to companies and households is at 1.13 percent at the end of July. Ths figure is up by 0.16 percentage points from the 0.97 percent tallied in the previous month.

The delinquency ratio tends to decrease in June when local banks clean up their balance sheets at quarter-end, according to the FSS.

The delinquency ratio of banks' corporate lending rose sharply in July due to the assessment of credit risks of local companies. The default rate of corporate loans came in at 1.44 percent in July, up 0.25 percentage points from a month earlier, with the corresponding rates for large corporations and small- and mid- sized firms advancing by 0.15 percentage points and 0.28 percentage points over the cited period respectively.

The delinquency ratio of banks' household lending rose 0.05 percentage points on-month to 0.77 percent as of the end of July, according to the statement. The default rate for home-backed loans, which account for most of

The full story is available at Xinhua News.