Korea’s Top 5 Commercial Banks
South Korean bank issuance has reached $140 billion so far this year as lenders turned to the bond market to build capital before a surge in corporate demand pushed interest rates higher.
Bank bond issuance amounted to 186.6 trillion won ($138.6 billion) as of Nov. 18 this year, up 13.43 percent from the same period last year and surpassing last year’s total of 183.2 trillion won, according to the Korea Financial Investment Association on Sunday. This is the largest amount since 2006, when the association began collecting related materials.
Bank bond issuance reached KRW 122.4 trillion during the 2008 financial crisis, dropped to the KRW 71 trillion level in 2012, and surpassed KRW 122 trillion in 2017.
Bank bonds also hit a record high of 387.3 trillion won.
The surge in banknotes was attributed to tight liquidity in the corporate debt market caused by the Legoland Korea crisis. Amid volatile money markets, companies turned to banks for loans as they were unable to raise funds directly through debt issuance.
The corporate loan balance of KB, Shinhan, Hana, Woori, and NH Nonghyup reached 703.8 trillion won as of March 27, an increase of 8.9 trillion won from the end of September and the highest profit in 13 years. Moon.
Loans to large enterprises increased by KRW 5.9 trillion during the citation period, accounting for 66% of the total. It was the biggest increase in more than two years.
Expectations of a longer tightening cycle also persuaded lenders before interest rates rose.
The rise could slow in the near term as authorities ordered banks to refrain from further issuance until debt markets normalize from severe imbalances caused by oversupply and liquidity concerns.
in a pulse
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
