SEOUL: Banks in South Korea are expected to tighten lending standards in the fourth quarter, particularly for household loans, as authorities have tightened loan restrictions to clamp down on the overheated housing market, a central bank survey showed on Monday.
According to a Bank of Korea (BOK) survey of 203 financial institutions, including 18 banks and 26 mutual savings banks, the index measuring banks' lending attitudes stood at minus 14 for the October-December period, reports Yonhap news agency.
A reading below zero indicates that more lenders plan to tighten rather than ease credit standards. The figure compares with 7 in the first quarter, minus 13 in the second quarter and minus 28 in the third quarter.