Bank loan delinquency rate hits 0.63%, a near 10-year high

The loan delinquency rate of domestic banks (the share of loans whose interest or principal payments were not made on time) hit 0.63%, the highest in 9 years and 10 months.

The corporate loan delinquency rate also remains higher than a year ago, signaling growing financial strain on households and businesses struggling to repay debt.

Several brokerages' reports analyzed that bank loan delinquency rates are on an upward trend. Hanwha Investment & Securities diagnosed that improvement in corporate delinquency will not come easily. BNK Securities analyzed that even if the upward trend in delinquency rates continues, the capital burden on banks will be limited.