Bank loan delinquencies rise as write-offs fall

The delinquency ratio on loans extended by banks rose in July from a month earlier due mainly to a fall in write-offs of soured debts, data showed Tuesday.

The delinquency numbers on banks' won-denominated loans stood at 0.63 percent as of the end of July, up 0.07 percentage points from a month earlier, according to the data from the Financial Supervisory Service (FSS).

The amount of newly overdue loans came to 3.2 trillion won ($2.3 billion) in July, up 0.6 trillion won from the previous month.

The amount of write-offs of such loans, on the other hand, came in at 1.4 trillion won, down 3.9 trillion won over the cited period, according to the FSS.

The delinquency ratio for corporate loans stood at 0.78 percent as of the end of July, up 0.1 percentage point from a month earlier, and the ratio for household loans rose 0.02 percentage points to 0.42 percent over the same period.

Yonhap