Shinhan Bank is moving to manage credit loans in response to rising household debt. It will temporarily adjust the volume of non-face-to-face credit loan applications and cut limits on overdraft accounts with low utilisation when extending maturities.

Shinhan Bank said on June 12 it will implement "pre-emptive credit loan management measures" from June 15.

It will limit non-face-to-face credit loan applications if the combined daily intake of face-to-face and non-face-to-face credit loans exceeds internal management standards. Support products for financially vulnerable groups, including loans for low-income borrowers and mutually beneficial refinance loans, will be excluded from the limits.

It will also strengthen management of overdraft limits. For household credit loans over 30 million won that are limit loans, accounts with a limit utilisation rate below 10 percent, measured over the contract period and in the three months before maturity, may have their limit cut by up to 20 percent when the maturity is extended.

A Shinhan Bank official said, "We prepared pre-emptive operating measures to manage household loans in a stable way." The official added, "We will minimise inconvenience for customers with genuine demand for financial services and continue support for financially vulnerable groups without interruption."