SEOUL, Oct. 16 (Xinhua) -- South Korean banks' household lending rose for the eighth straight month due to strong demand for mortgage loans, central bank data showed Thursday.
Debt owed by households to deposit-taking banks totaled 1,170.2 trillion won (824.9 billion U.S. dollars) at the end of September, up 2.0 trillion won (1.4 billion dollars) from a month earlier, according to the Bank of Korea (BOK).
The growth was slower than an expansion of 4.1 trillion won (2.9 billion dollars) in August, but the debt continued to go up since February on the back of solid demand for home-backed loans.
Banks' mortgage loans grew 2.5 trillion won (1.8 billion dollars) last month, while other loans to households, including credit loans, credit lines and commercial real estate-backed loans, reduced 500 billion won (352.5 million dollars).
The local real estate market showed signs of sluggishness. The number of apartment transactions across the country reduced from 54,000 in June to 35,000 in July and 34,000 in August.
The BOK cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year.
Banks' corporate loans ran to 1,360.1 trillion won (958.8 billion dollars) at the end of September, up 5.3 trillion won (3.7 billion dollars) from a month earlier.
Lending to big companies gained 1.3 trillion won (916.5 million dollars), while loans to small firms swelled 4.0 trillion won (2.8 billion dollars) last month. ■
