Household loans extended by South Korean financial institutions increased for a fifth consecutive month in August, but the growth rate slowed as the property market sagged on falling demand amid the economic downturn, the central bank said Tuesday.

Household lending extended by local banks and non-bank institutions totaled 649.8 trillion won ($584.3 billion) as of the end of August, up 4.1 percent from the previous year, according to the Bank of Korea. Such lending grew by 2.3 trillion won on-month in August, the central bank said.

The August on-year growth rate slowed from the 4.6 percent on-year expansion in July. But from a month earlier, the August gain accelerated, according to the central bank.

The data came as the Korean economy has been losing steam, hit by faltering exports and waning domestic demand. The local property market has been suffering a slump as housing sales hit their lowest level in six years.

Policy efforts by the financial regulator to curb their rise have helped reduce the growth of the loans, the BOK added.

Banks’ household loans, including home-backed lending, grew by 1.5 trillion won on-month to 460.1 trillion won as of end-August, accelerating from a 700 billion won rise in July.

Banks’ mortgage lending grew at a faster clip by 800 billion won to 311.6 trillion won in August, compared with a 400 billion won gain the previous month, according to the central bank. (Yonhap News)