Banks to apply stricter mortgages rule
Date
11/26/2017 3:53:21 AM
(MENAFN) In a new proposal to improve managing household debt, financial regulator of South Korea will oblige first-tier banks to apply a stricter rule for mortgage lending in the fourth quarter of 2018.
The new home mortgages rule will have a new ratio that measures all debt principle and interest payments as an amount of annual income.
According to officials at the Financial Services Commission (FSC), the financial regulator, have said the DSR system will improve evaluate a borrower's repayment ability and eliminate a potential default risk.
Second-tier banks, including as savings banks and credit unions, will start a trial operation of the DSR system during the third-quarter of next year.
MENAFN2611201700450000ID1096147335
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.