Banks in South Korea to maintain eased stance in extending loans: report
Increased lending capacity and intensifying competition encourage banks.
Banks in South Korea are expected to maintain an eased stance in extending loans in Q1, reports Yonhap, based on a poll conducted by the Bank of Korea.
The lenders’ increased lending capacity and intensifying competition to profit off loans will drive this attitude, the BOK said.
According to the poll, which included 18 banks, the index gauging banks' lending attitude toward households and businesses stood at 13 for the first quarter period.
A reading above zero means the number of lenders that will ease lending surpasses that of banks planning to tighten lending criteria.
However, the BOK warned that the credit risks for borrowers in the first quarter will also likely increase due to a rising debt burden from high borrowing costs.