5 Major Banks’ Deposit & Loan Trends in Feb 2026: Funds Shift to Demand Deposits & Credit Loans

Shifts in financial flows are emerging in South Korea’s banking sector. Funds are moving away from traditional instruments like fixed deposits and mortgage loans and into more liquid assets, such as demand deposits, which can be quickly deployed into the stock market. Simultaneously, while overall household loans are decreasing, personal credit loans are experiencing a slight increase.

Banking Sector Trends

Data from February 19th indicates that the combined deposits of the five major South Korean banks – KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup – reached 2,192.4091 trillion won. This represents a rise of 29.2379 trillion won compared to the 2,163.1712 trillion won recorded at the end of 2025.

Shifting Deposit Patterns

While total deposits have increased, the composition of those deposits is changing. Demand deposits, including Money Market Deposit Accounts (MMDA), have seen a significant rise. As of February 19th, total demand deposits stood at 755.3990 trillion won, an increase of 12.9215 trillion won from year-end. MMDA deposits specifically grew by 9.8305 trillion won, reaching 137.1687 trillion won. Conversely, fixed deposits decreased by 1.1321 trillion won, settling at 938.1542 trillion won.

Did You Know? The five major South Korean banks saw a combined total deposit increase of 29.2379 trillion won between the end of 2025 and February 19th, 2026.

Loan Market Dynamics

These shifts align with a “money move” trend influenced by the stock market environment. With the KOSPI index experiencing gains – rising from 4214.17 on December 30th of the previous year to 4224.53 on January 2nd and ultimately reaching a record high of 5808.53 on February 20th – investors are opting to hold funds in more accessible accounts like MMDAs rather than locking them into fixed deposits.

This trend is also reflected in lending patterns. Total household loans across the five banks decreased by 2.4420 trillion won, from 767.6781 trillion won at year-end to 765.2361 trillion won on February 19th. Mortgage loans specifically declined by 2.1338 trillion won, falling to 609.3743 trillion won, likely due to government policies and a slowdown in housing transactions.

Expert Insight: The movement of funds from fixed deposits and mortgages into demand deposits suggests a growing investor appetite for liquidity and a willingness to capitalize on opportunities in the rising stock market. This shift could indicate a broader trend of risk-taking behavior among individual investors.

However, personal credit loans saw a slight increase, rising by 171 billion won to 104.9856 trillion won. This suggests that individuals are maintaining access to credit lines as a potential lever for investment in the bullish market, rather than committing to long-term, fixed-rate mortgage debt.

Frequently Asked Questions

What is the current total deposit amount held by the five major South Korean banks?

As of February 19th, the combined total deposits held by the five major banks is 2,192.4091 trillion won.

How have demand deposits changed recently?

Demand deposits have increased by 12.9215 trillion won since the end of 2025, reaching 755.3990 trillion won as of February 19th.

What happened to mortgage loan amounts?

Mortgage loans decreased by 2.1338 trillion won, falling to 609.3743 trillion won.

As the stock market continues to fluctuate, will we see further shifts in deposit and loan patterns within the South Korean banking system?