South Korea bank lending

The volume of resolved loans rose during the month.

Corporates borrowed money for dividend payments, the Bank of Korea said.

High borrowing costs lowered demand.

But bad loans are expected to rise moderately.

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. 

Fast-rising interest rates are expected to hit borrowers’ capacity to repay loans.