SEOUL, Sept. 13 (Xinhua) -- The bad debt ratio among South Korean banks fell to the lowest in about 10 years in the second quarter, financial watchdog data showed Thursday.
The loan delinquency ratio for local banks stood at 1.06 percent as of end-June, down 0.12 percentage points from three months earlier, according to the Financial Supervisory Service.
It was the lowest since the end of the third quarter in 2008, a quarter right before the global financial crisis erupted.
For the past 10 years, large corporations completed restructuring process, while domestic banks lent money mainly to households. Household debts are relatively easier for banks to manage than corporate debts.
The bad debt ratio for bank corporate loans shed 0.19 percentage points from three months earlier to 1.56 percent as of end-June. The figure for household loans inched down 0.01 percentage points to 0.24 percent.
