Five major local banks have reportedly accepted financial authorities’ advice to rein in credit loans amid growing concerns about soaring household debts. 

According to the financial industry on Friday, the country's top five commercial banks, including KB, Shinhan, and Woori, will limit the amount of credit loans to no more than the annual salary of the loan applicants. 

NH Nonghyup and Hana Bank also took similar measures recently. 

Earlier, the Financial Supervisory Service held a meeting with representatives of local banks and asked the lenders to further regulate credit loans, suggesting the annual salary line as an upward threshold. 

According to the Bank of Korea on Tuesday, the nation’s combined household debt topped one-point-eight quadrillion won for the first time in the second quarter, with a spike in housing prices drawing buyers and speculators.