SEOUL, Oct. 23 (Xinhua) -- South Korean banks will continue to tighten lending standard in the fourth quarter amid lingering economic uncertainties, a central bank survey showed Wednesday.
The lending attitude index stood at minus 12 for the October-December quarter, up from minus 17 in the previous quarter, according to the Bank of Korea (BOK) poll of 204 banks and other financial institutions conducted between Aug. 27 and Sept. 11.
The index below zero indicates that lenders willing to tighten loan standard outnumber those willing to ease it.
The lending attitude index for big companies slipped from zero in the third quarter to minus 3 in the fourth quarter, but the index for small firms stood unchanged at 3.
Loan to big corporations will be tightened on the back of economic uncertainties at home and abroad, but lending to small firms will be eased on the government's efforts to financially support the struggling small businesses.
The index for mortgage loan to households decreased from minus 22 in the third quarter to minus 28 in the fourth quarter, while the reading for other loans to households such as credit loan went up from minus 25 to minus 17.
The central bank lowered its benchmark interest rate by 25 basis points to 3.25 percent earlier this month.
The credit risk index for households reduced from 25 in the third quarter to 11 in the fourth quarter, but the index for big companies gained from 6 to 11.
The lending demand index dipped from 17 to 13 in the cited quarter on expectations for lower demand for home-backed loan from households. ■
