SEOUL, July 20 (Xinhua) -- South Korean banks planned to tighten lending standards in the third quarter amid the government's continued efforts to curb massive household debts, a central bank survey showed Monday.
The lending attitude index declined to minus 7 in the July-September quarter from minus 2 in the previous quarter, according to the Bank of Korea (BOK)'s poll of 203 banks and other financial institutions conducted from June 4 to June 17.
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 loans.
The index for mortgage loans to households reached minus 11 in the third quarter, while the reading for other loans to households, such as credit loans, recorded minus 14.
The index for large companies dipped from 14 in the second quarter to zero in the third quarter, and the index for small firms decreased from 11 to zero.
The BOK raised its benchmark interest rate by 25 basis points to 2.75 percent in July, marking the first shift toward monetary tightening in about three and a half years since January 2023.
The credit risk index for households retreated from 31 in the second quarter to 19 in the third quarter.
The index for big companies fell from 11 to 8 in the cited period, and the figure for small firms slipped from 31 to 25. ■
