South Korean Bank Lending Increases Amid Low Interest Rates
kpride, June 22, 2015, 8:39 a.m.
Bank lending to households and businesses has increased rapidly over the past year amid continued low interest rates. The Bank of Korea said Sunday that outstanding bank loans to household and corporate borrowers stood at approximately US$1.19 trillion as of last Monday. That's up more than $90 billion from August of last year.
Analysts attributed the surging debt to the central bank's aggressive monetary easing policies, which are designed to promote consumption. Most recently, the BOK cut its benchmark interest rate to a record low 1.5 percent to counter the fallout of the outbreak of Middle East Respiratory Syndrome.