The Korea Times
Korean banks are expected to tighten lending standards for households in the second quarter amid growing concerns over credit risks stemming from the ongoing Middle East crisis, a central bank survey showed Tuesday. The index gauging banks' lending attitudes stood at minus 4 for the April-June period, down from minus 1 in the previous quarter, according to the survey of 203 financial institutions, including 18 banks, conducted by the Bank of Korea (BOK). A reading below zero indicates that a majority of lenders plan to tighten lending standards. The index of banks' lending attitudes has remained in negative territory for five consecutive quarters since the second quarter of 2025, as financial authorities have tightened regulations on household lending since late 2024 to rein in surging household debt and rising housing prices in Seoul and surrounding regions. "Under the government's ongoing debt management stance, lending standards for both housing-related and general household loans are expected to tighten," the BOK said. In contrast, lending attitudes toward large corporations are proje
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