BUSINESS S.Korean banks to tighten standard for mortgage loan to households in Q2

BUSINESS

S.Korean banks to tighten standard for mortgage loan to households in Q2

Xinhua

14:15, April 08, 2019

SEOUL, April 8 (Xinhua) -- South Korean banks planned to tighten standard for mortgage loan to households in the second quarter on the sluggish real estate market, a central bank survey showed Monday.

VCG31442212850.jpg

File photos: VCG

The composite lending attitude index, which measures banks' standard for all types of loan, stood at 4 in the April-June quarter, down from 9 in the previous quarter, according to the Bank of Korea (BOK).

It was based on a survey of local commercial banks. The reading below 100 means the number of banks planning to tighten loan standard surpassed the figure for banks to loosen it.

The index for home-backed loan to households came in at minus 13 for the second quarter, down from minus 3 in the previous quarter.

As the government unveiled a set of measures to control speculative investment in the property market, banks got reluctant to lend money to potential home buyers.

The reading for credit loan to households came to zero in the second quarter, up from minus 3 in the prior quarter.

The lending attitude index for bank loan to big corporations stood unchanged at zero for the second quarter, with the figure for loan to small companies making no change at 17.

The composite credit risk index, which gauges credit risks for all types of loan, posted 13 in the quarter, indicating the number of banks forecasting a higher credit risk exceeded the figure for banks having a positive outlook.

The credit risk index for household debts was 10 in the quarter, with the reading for small companies standing at 20. The number for big corporations came in at 7 for the June quarter.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue