Banks in South Korea are expected to maintain an eased stance on extending loans in the second quarter of the year amid softened curbs on lending, a central bank survey showed Wednesday.
According to the poll of financial institutions, including 18 banks, conducted by the Bank of Korea (BOK), the index gauging banks' attitude toward lending to households and businesses stood at 8 in the January-March period.
The figure compares with 11 the previous quarter and 14 during the final quarter of last year.
A reading above zero means the number of lenders that will ease lending surpasses that of banks planning to tighten lending criteria.
The BOK said that banks have such an attitude toward lending as demand for household loans is expected to increase under eased lending criteria for multiple home owners, it added.
The poll, however, said the credit risks for borrowers in the second quarter will likely mount due to a rising debt burden from high borrowing costs driven by the BOK's rate hikes to curb inflation.
The index gauging credit risks for households and businesses rose to 35 in the first quarter of this year from the previous quarter's 33.
Earlier this month, the central bank held its key interest rate steady at 3.5 percent for the second straight time as inflation appears to be easing and concerns are rising over an economic slowdown.
It marked the second straight time that the BOK has stood pat on monetary policy following a rate freeze in February. The pause came after the BOK had delivered seven consecutive hikes in borrowing costs since April last year.
Source: Yonhap News Agency