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FSC to Reduce Household Loan Limit in Non-Banking Sector

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공표년도

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2011-06-22

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The Korean government is considering measures to stem rising household debt in the non-banking sector.
Officials at the Financial Services Commission said on Wednesday‚ that it is looking at lowering the cap on household loans issued by non-banking institutions.
The FSC also plans to tighten restrictions on mutual financial institutions such as Nonghyup and Suhyup‚ the nation's agricultural and fisheries cooperatives‚ where lending is on a sharp rise.
Institutions that lend too much will also have to set aside bigger reserves to guard against potential household loan defaults.
The FSC will announce the plan next week.
Reporter : song@arirang.co.kr

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