Institute of Finance "should gradually strengthen credit assessment"

[South Korea's Choice Financial newspaper reporter] The government of household debt management policies to strengthen financial institutions in the credit assessment has gotta seomincheung difficult to experience it can gradually be promoted need to insist that came out.

Korea Institute of Finance, Senior Research Fellow, the city administration has 19 days strengthen the goddess examination in a report called "contrast the need for seomincheung financing difficulties likelihood of the reinforced while managing households' policy big impact on seomincheung by reducing other household loans in the short term this has to be gradually promoted to prevent "he said.

Chinese New Year is a Senior Research Fellow worried that "particularly including credit, other household loans, the demand is expected to increase sustainable economic slowdown, but mainly floating rate yeoseo the insolvency risk of rising interest rates relatively high.

Banknote was the proportion of household loans, adjustable rate loans at the end of September last year, is 62.4% of the mortgage loans. While in "Other household loans, including credit loans of floating rate loans are great as superior to 95.1%.

In the case of floating rate loans as interest rates riser is a situation where the burden is growing. According to the Bank of Korea recorded the highest level since January household savings bank lending rates (newly extended basis) is February (3.48%) 3.29% a year to 2015.

Senior Research Fellow, the city administration is watching and 'DSR (total debt repayment rate) loans, household debt management policy review and strengthening government utilizing the indicators need to pursue it lasts preparation for the loans insolvency possibility of an interest rate rise' seomincheung difficult for people to receive financial aid policy, it is necessary to strengthen the linkage as welfare, delinquency before and after the debt restructuring, rehabilitation program, "he suggested.

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