April 25, 2024

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[THE INVESTOR] Financial authorities on Oct. 27 urged banks not to excessively raise mortgage lending rates, warning that they could face strong “social criticism.”

Kim Yong-beom, vice chairman of the Financial Services Commission, made the remarks during a meeting with senior executives from retail banks.

Concerns are growing that some desperate borrowers could face risks of defaults as the nation’s central bank hinted that it may soon raise key interest rates from current record low levels.

Kim said banks need to calculate and set lending rates rationally.

Park Sae-chun, vice governor of the Financial Supervisory Service, also said banks could face significant backlash if they raise lending rates without due cause.

By Alex Lee and newswires (alexlee @heraldcorp.com)