SEOUL, May 13 (Xinhua) — South Korean banks’ loan delinquency ratio hit a record low in March amid the record-low policy rate, financial watchdog data showed Thursday.
The ratio of bank loans, overdue at least one month, stood at 0.28 percent of the total at the end of March, down 0.05 percentage points from a month earlier, according to the Financial Supervisory Service (FSS).
It marked the lowest since data began to be compiled in 2007. It was identical to the reading tallied in December last year.
The record-low bad debt ratio came on the back of the record-low interest rate. The country’s central bank has left its benchmark interest rate unchanged at an all-time low of 0.50 percent since May last year.
The delinquency ratio for banks’ corporate loans shrank 0.07 percentage points from a month earlier to 0.36 percent as of end-March.
The ratio for bank loans to households slipped 0.04 percentage points to 0.18 percent in the cited month. Enditem