Household loans issued by five major local banks increased for the fifth consecutive month in September.

According to sources in the banking industry on Sunday, the combined outstanding loans extended to households by five major lenders – KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup – came to 682-point-32 trillion won at the end of September, up one-point-51 trillion won from the previous month.

The figure marks a rise for the fifth consecutive month since posting the first on-month increase in May in 17 months.

In particular, housing mortgage loans rose by two-point-85 trillion won from 514-point-99 trillion won during the period. It marks the largest gain since October 2021, when it grew three-point-79 trillion won.

The recent rise is considered unusual considering that the fixed and adjustable interest rates on mortgage loans were in the three to four percent range in October 2021, about three percentage points lower than the current figures.

Under the circumstances, financial watchdogs and banking industry officials have been holding closed meetings almost every week since September 20 to discuss ways to curb household loans.