As a means to improve structu ral vulnerability of bank mortgage loans, the government has been encouraging banks to increase the proportion of fixed rate and amortiz ed loans since 2011.

As of the end of 2014, banking sector’s proportion of fixed rate loans incr eased 7.7%p to 23.6% from 15.9% year-on-year, wh ereas amortized loans grew 7.8%p to 26.5% from 18.7% during the same period. The numbers exceeded the target1 set by ‘Measures to Improve Structural Soundness of Household Debt ’ announced in February.

The proportion of fixed loan p roducts shifting to floating rate after 5 years and applying adjusted interest rate after every 5years went up significantly.

The proportion of amortized l oans greatly increased due to the change in BIS’ minimum capital ratio and active partici pation by the banking sector.

*Banks with the biggest proportio n of amortized loan(%): SC(40.7)→Kwangju Bank(29 .9)→KB(29.1)

The government will continuo usly review the progress of the banking sect or’s efforts to improve household debt struct ure on a yearly basis.

*Please refer to the attached PDF for details.