SEOUL: Banks in South Korea are expected to tighten their stances on extending loans in the third quarter of the year, a central bank survey showed Wednesday. According to the poll of financial institutions, including 18 banks, conducted by the Bank of Korea (BOK), the index gauging banks' attitude toward lending home mortgages stood at minus 15 for the July-September period. The figure compares with minus 6 the previous quarter and minus 3 during the first quarter. A reading below zero means that a large number of lenders will tighten lending standards The poll also showed the credit risks for borrowers in the third quarter will likely remain high due to the rising debt burden from high borrowing costs driven by the BOK's rate hikes to curb inflation. Earlier this month, the BOK froze its key rate at 3.5 percent for the 12th straight session amid moderating inflation. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023. Source: Yonhap News Agency
Banks to tighten lending criteria in Q3: survey
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