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Gwangju-Jeonnam Financial Sector Sees Slowdown in Deposit and Loan Growth for Q2
Finance · Major Banks · yonhap_finance · 2026-08-26
The Bank of Korea's Gwangju-Jeonnam headquarters reported a deceleration in deposit and loan growth for the second quarter, driven by reduced corporate lending.
What Happened
Financial Trends: The Bank of Korea's Gwangju-Jeonnam headquarters reported that both deposit and loan growth in the region slowed during the second quarter compared to the previous period. The increase in deposits reached 290.3 billion won, down from the 300.9 billion won recorded in the first quarter.
Lending Activity: Total loans from regional financial institutions grew by 2.2298 trillion won in the second quarter, a smaller increase than the 2.9721 trillion won seen in the first quarter. Deposit banks accounted for 1.402 trillion won of this growth, while non-bank deposit institutions contributed 827.8 billion won.
Sectoral Breakdown: While corporate lending at deposit banks saw a significant reduction in growth, household lending expanded, primarily driven by mortgage loans. Conversely, non-bank institutions experienced a slowdown in savings bank lending, with credit unions shifting from growth to a net decrease.
Borrower Analysis: Both household and corporate loan growth rates contracted on a quarter-over-quarter basis. This trend indicates a broader deceleration in the pace of credit expansion across the regional financial landscape.