BOK "Banking sector to curb household loans in Q4"

The banking sector is expected to continue to curb household loans in the fourth quarter of this year.

According to the Bank of Korea's survey on loan behavior of financial institutions released today (23rd), the bank's loan attitude index in the fourth quarter was -12.

If the index is below zero, it means strengthening loan attitudes, and if it is above zero, it means easing.

Specifically, households saw their homes strengthen from -22 in the third quarter to -28 due to continued household debt management.

Households with credit loans in general were -17, easing from -25 in the third quarter, indicating they would be somewhat more accommodative than home-related loans.

The Bank of Korea analyzed that the banking sector will continue to strengthen its attitude toward household loans due to continuous household debt management, including the expansion of credit loans by stress DSR.

We expected corporate and household credit risks to remain high in the fourth quarter of this year.

The credit risk index for the fourth quarter, which was forecast by domestic banks, was tallied at 19.

Although it fell 7p from 26 in the third quarter, there were still more responses than expected that credit risk would increase.

The survey was conducted from August 27 to September 11 for the general manager of credit affairs at 204 financial institutions.