Retail in Asia

In Markets

S Korea says to curb lending by non-bank companies

South Korea said on Sunday it would curb lending by non-banking companies including insurers, expanding its fight to contain household debt before a debt crisis cripples Asia’s fourth largest economy.

The country imposed a string of measures aimed at suppressing lending by banks in June last year, in principle asking banks not to increase lending faster than the pace of expansion for the country’s economy in nominal terms.

As a result, consumer lending by commercial banks has slowed, but lending by other companies grew faster because borrowers flocked to these less-regulated lenders, the government said in a joint statement from four organisations.