We take a deep look into the reform of the contribution system. With household loan regulations becoming more stringent due to the government's September 7 real estate measures, commercial banks are concerned that the burden of contributions to the Housing Finance Credit Guarantee Fund will increase. It was found that the contribution fees to the Housing Finance Credit Guarantee Fund (Jushibo) borne by the domestic banking sector have increased every year, approaching 1 trillion won.
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This is due to the judgment that the interest repayment burden on financial consumers and the burden on the financial market have increased due to the recent sharp increase in interest rates. With household loan regulations becoming more stringent due to the government's September 7 real estate measures, commercial banks are concerned that the burden of contributions to the Housing Finance Credit Guarantee Fund will increase. As household demand for home mortgage loans continues to increase, banks' costs increase.
With household loan regulations becoming more stringent due to the government's September 7 real estate measures, commercial banks are concerned that the burden of contributions to the Housing Finance Credit Guarantee Fund will increase.
Currently, the contribution rate for new insurance is around 0.05-0.30% depending on the type of loan, such as fixed/variable interest rate and repayment method. First, the government decided to expand the preferential rates for new insurance. The justification is to expand support for small business owners and the self-employed, but if the market is in the same situation as it is now. The Regional Credit Guarantee Foundation is demanding that bank contributions be increased further to make up for the growing insolvency.
There were many questions like, “If the bank pays more, will our loan interest rate rise?” The Financial Services Commission has decided to differentially apply the contribution fee for the New Newspaper depending on the loan amount starting from April next year. On the 12th, the Ministry of Strategy and Finance held the '2nd Contribution Management Deliberation Committee' at the Korea Financial Information Service, chaired by Second Vice Minister Choi Sang-dae, and adjusted the system for imposing new information and retirement mortgage guarantee account contributions. From the bank's point of view, the HF guarantee is a “safety device that allows the bank to transfer the risk of insolvency.” It allows the bank to provide a loan while reducing the risk, and in return, it pays a contribution fee.
