S.Korean lenders to tighten loan standard in Q3

Source: Xinhua| 2020-07-13 15:39:33|Editor: huaxia

SEOUL, July 13 (Xinhua) -- South Korean lenders planned to tighten loan standard in the third quarter due to worry about an economic fallout from the COVID-19 outbreak, central bank survey showed Monday.

The lending attitude index for big corporations fell from minus 10 in the second quarter to minus 13 in the third quarter, according to the Bank of Korea (BOK).

The reading below zero indicates that the number of lenders planning to tighten loan standard is higher than the number of those planning to ease standard.

The index for small companies dipped from seven in the second quarter to minus 10 in the third quarter, while the reading for mortgage loan to households tumbled from minus seven to minus 17 in the same period.

The tightened lending standard was attributable to the negative economic effect from the coronavirus pandemic.

Under the government plan, local lenders already increased loan to the self-employed and micros business owners as well as big companies that have been struggling with the economic slump from the pandemic.

Credit risks also deepened. The credit risk index for big corporations gained from 23 in the second quarter to 27 in the third quarter, while the reading for home-backed loan to households rose from 40 to 43 in the same period. Enditem

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