There is no loan without ‘collateral’? The pros and cons of the tight loan market > 消息

The savings bank industry has changed. As the delinquency rate of those with low to medium credit soared due to high interest rates and the economic downturn, savings banks reduced credit loans and significantly increased the proportion of secured loans to protect their soundness. As nearly half of new loans are made possible only with collateral, concerns are growing that the original function of savings banks, which were a window for emergency funds for the common people, is fading.

On the other hand, commercial banks and internet-only banks are accelerating aggressive sales using collateral. Kakao Bank is expanding the real estate mortgage loan market for individual business owners by leveraging its platform competitiveness, and across the banking sector, ‘deposit-secured loans’, which borrow money using deposits as collateral without canceling them, are rapidly increasing. This is because it was attractive to borrowers because it was relatively free from loan regulations and DSR (Debt Service Ratio) review.

The increase in loans secured by deposits is not simply due to living difficulties. There is also considerable demand to utilize interest rate differences to secure additional funds while maintaining existing deposit interest, or to raise leveraged investment funds in line with the recent stock market boom. In the end, as the loan market closes the door to ‘credit loans’ and reorganizes to focus on ‘collateral,’ polarization is deepening as those with assets use them to seize opportunities, while vulnerable borrowers who do not have assets are further pushed into the financial blind spot.