South Korean banks to reduce lending in Q3: survey

Credit risk scores for the sectors are likely to record an increase, says the Bank of Korea.

South Korean lenders are expected to moderately reduce their mortgage and corporate lending in Q3, a survey by the Bank of Korea (BOK) revealed. This is even though demand for loans from these two sectors are expected to climb during the quarter.

BOK’s domestic bank lending index for Q3 for large corporations, SMEs, and household mortgage loans all came back at negative figures, indicating that lenders will tighten their standards for loaning in these sectors.

Credit risk scores for large companies and households also recorded increases, whilst risk scores of SMEs remained unchanged from Q2.

Credit risks in both corporations and households are expected to rise sharply, South Korea’s central bank noted in the survey conducted from 22 June to 8 July, featuring answers from 199 financial institutions.

Similarly, non-bank financial institutions except credit card companies are all expected to also tighten their lending standards.

Also Read

Tighter policies drag South Korean household loan growth in September

SME loans in Taiwan rose in August

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit