South Korean banks to further ease lending in Q3: report

Household loan growth has slowed as borrowing costs rose, according to Yonhap.
 
Banks in South Korea are expected to further ease lending in the third quarter, even as credit risks are expected to rise, reports Yonhap, based on a survey conducted by the Bank of Korea (BOK).
 
An index gauging banks’ attitude toward home-backed loans and unsecured household lending stood at 14 and 19, respectively, for the July-September period, according to the findings of a poll of officials handling credit affairs at financial institutions (FIs)—which include 18 banks.
 
A reading above zero means the number of lenders that will ease lending surpasses that of banks planning to tighten lending criteria. 

ALSO READ: South Korea regulator calls for banks to intensify loan assessment
 
South Korea’s household debt saw its growth slow recently amidst tightened lending rules and rising borrowing costs, according to local reports.

Household loans extended by local banks grew only 2.8% year-on-year in April, a sharp decline from January’s 6.2% rise, according to official data.

ALSO READ: South Korea's financial system faces short-term crisis risk as inflation ramps up: poll
 
Part of this has to do with rising rates, with the central bank raising the rate five times since August last year to 1.75%. The fast-rising borrowing costs have led to increased worries over credit risks for households.

Follow the link s for more news on

Join Asian Banking & Finance community
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!

Exclusives

Private fund tokens may be the future of investing
Kinexys seeks to keep a token’s sensitive financial information from prying eyes.
More tax perks could drive Philippine SMEs to go ‘green’
The Southeast Asian nation’s 1.1 million small businesses can be a target for green loans. 
Asia struggles with G20 payment targets
The ultimate goal is for cross-border payments to achieve “the speed of the internet.”