Banks likely to loosen lending criteria in Q1: BOK survey

Banks in Korea are expected to slightly ease lending standards in the first quarter amid authorities' continued efforts to rein in household lending, a central bank survey showed Monday. According to a Bank of Korea (BOK) survey of 18 commercial lenders, the index measuring banks' lending attitudes stood at 8 for the January-March period, up sharply from minus 21 in the fourth quarter of 2025. A reading below zero indicates that more lenders plan to tighten, rather than ease, credit standards. The first-quarter figure marked the first time the index has registered a reading above zero since the first quarter of 2025. By sector, the index for home mortgage lending came in at 6 for the first quarter, compared with minus 44 in the previous quarter. The indexes for loans to large companies and small- and mid-sized enterprises (SMEs) stood at 6 and 11, respectively. "Demand for housing-related loans is expected to rise slightly, driven by home purchases and demand for lease financing," a BOK official said. "For corporate loans, banks are likely to maintain an accommodative lending stance, though