SEOUL, Oct. 26 (Xinhua) -- South Korean banks planned to tighten lending standards in the fourth quarter, affected by external uncertainty and high interest rates, a central bank survey showed Monday.
The lending attitude index reached minus 11 during the October-December quarter, continuing the tightening trend from the previous quarter's minus 20, according to the Bank of Korea (BOK)'s poll of 203 banks and other financial institutions conducted from Sept. 2 to 16.
The index has stayed below zero since the second quarter of 2025, hinting that lenders willing to tighten loan standards outnumbered those willing to ease them.
The index for large corporations dropped from zero in the third quarter to minus 8 in the fourth quarter, while the index for small firms was unchanged at minus 19.
The broad squeeze was driven by global macroeconomic headwinds and recent weakness in loan soundness.
The index for mortgage loans to households rebounded from minus 17 to zero in the cited period, but the reading for other loans to households, such as credit loans, recorded minus 8 in the fourth quarter.
The BOK delivered its back-to-back policy rate hikes in July and August to 3.00 percent, hinting at further monetary tightening later this year or early next year.
The credit risk index for households increased from 19 in the third quarter to 28 in the fourth quarter.
The index for big companies rose from 3 to 6 in the cited period, but the figure for small firms declined from 33 to 31. ■
