▲ This Jan. 12, 2026, file photo shows a bank branch in Seoul. (Yonhap)

bank loans-survey

Banks likely to loosen lending criteria in Q1: BOK survey

SEOUL, Jan. 19 (Yonhap) -- Banks in South 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 credit risks are expected to persist, particularly among SMEs."

The government has implemented a series of regulations on home purchases in the greater Seoul regions and borrowing as part of efforts to cool the overheated real estate market and manage household debt.

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