Bank bad debt ratio of 0.53% in September...a slowdown in the rise

The Financial Supervisory Service said local banks' bad debt ratio stood at 0.53 percent as of the end of September this year, the same level as the previous quarter.

The non-performing loan ratio has been on the rise since the second quarter of 2020 due to financial support since the COVID-19 pandemic, but has been on the rise since September last year.

The FSS explained that the ratio of non-performing loans remained the same as the previous quarter as the number of new insolvency decreased despite the decrease in the size of non-performing loans.

In fact, new non-performing loans in the third quarter were KRW 5.1 trillion, down KRW 1.3 trillion from the previous quarter.