SEOUL, April 21 (Xinhua) -- South Korean banks planned to tighten lending standards in the second quarter to align with the government's efforts to curb massive household debts, a central bank survey showed Tuesday.
The lending attitude index fell to minus 4 in the April-June quarter from minus 1 in the previous quarter, according to the Bank of Korea (BOK)'s poll of 203 banks and other financial institutions conducted from Feb. 27 to March 13.
The index stayed below zero since the second quarter of 2025, hinting that lenders willing to tighten loan standards outnumbered those willing to ease it.
The government unveiled a set of measures to keep down massive household debts, especially mortgage loan.
The index for mortgage loan to households sank from minus 6 in the first quarter to minus 8 in the second quarter, but the reading for other loans to households, such as credit loan, added from minus 8 to minus 3.
The index for large companies declined from 11 to 3 in the cited period, and the index for small firms slipped from 3 to zero.
The BOK left its benchmark interest rate unchanged at 2.50 percent after lowering it by 25 basis points in February and May 2025.
The credit risk index for households stood unchanged at 19 in the second quarter compared to the previous quarter.
The index for big companies rose from 19 in the first quarter to 25 in the second quarter, and the figure for small firms gained from 33 to 36. ■
