Seoul: The rate of increase in South Korea's household loans sharply slowed last month amid tightening regulations by banks and other major lenders, data showed Sunday. Outstanding household credit extended by all financial institutions, including commercial banks, savings banks, and insurance and card companies, rose by 4 trillion won (US$2.86 billion) from a month earlier in November, slowing from a 6.6 trillion-won increase the previous month. According to Yonhap News Agency, last month, the value of loans extended by the non-banking sector, such as savings banks and insurance firms, surpassed that of the banking sector for the first time in more than two years. This shift appears to be a result of the balloon effect from financial authorities' pressure on banks to curb household loans. The growth of household loans given by banks halved in November from the previous month's 3.9 trillion won. In contrast, the growth of loans by the non-banking institutions remained nearly unchanged from a month earlier a t around 2.7 trillion won. Financial authorities have indicated that they will continue their efforts to reduce household loans. This strategy includes requiring detailed plans for loan extension from all major lenders in both the banking and non-banking sectors.