Non-bank loans account for nearly 30%: The DONG-A ILBO

The share of business loans from nonbank depository institutions (nonbank institutions) has reached nearly 30%, the highest figure since the global financial crisis in 2009. Businesses struggling to borrow l Money from banks rely more on institutions, such as mutual savings banks, which have relatively higher interest rates.

In particular, these loans are particularly prevalent in the real estate, wholesale and retail, accommodation and food sectors, which are vulnerable to economic downturn, exposing them to a greater risk of bankruptcy. raised.

According to data provided by the Federation of Korean Industries on Monday based on analysis of Bank of Korea cash flow diagrams, lending by depository banks and nonbanks has seen a significant increase since COVID-19. . In particular, the increased rate of loans from non-bank institutions with higher interest rates is more than twice that of their counterparts. Non-bank institutions are financial institutions that are not banks but handle deposits, such as mutual savings banks, credit union associations, and the Korea Federation of Community Credit Unions. In September this year, the average interest rate of deposit banks was 4.7%, while that of mutual savings banks was 8.0%.

“While corporate performance has become polarized since the second half of last year, most companies, with the exception of large ones, are struggling to take out loans from the banking sector. In particular, they are also struggling to issue corporate bonds due to soaring interest rates,” the Federation of Korean Industries said on the increase in lending by non-bank institutions.

According to the Federation of Korean Industries, the amount of business loans from depository banks increased by 10.9% annually between the end of 2019 and the first half of this year, while that of non-bank institutions increased by 27.5%. % over the same period. The federation said the share of business loans taken from non-bank depository institutions reached 29.7%, the highest figure since the 2009 financial crisis.

By industry, the level of loan concentration for real estate, wholesale and retail trade, and accommodation and food is 2.8, 2.1 and 2.0, respectively, in the first half of this year, registering the highest numbers relative to their shares in GDP. The level of loan concentration refers to the ratio of a particular industry’s share in the amount of loans relative to its share in GDP. “As these industries are directly affected by the hard landing in the real estate economy and the contraction in domestic consumption, special attention should be paid to the potential loan failure in these industries,” said Chu Kwang-ho, director of economics of the Federation of Korean Industries.

Do-Young Kwak now@donga.com