The lending attitude index came in at minus 2 for the April-June quarter, down 7 points from the previous quarter, according to the Bank of Korea (BOK).
The reading below zero means more lenders plan to tighten loan standard. The results were based on a survey of 201 lenders, including banks, savings banks, credit card issuers and life insurers, conducted from March 15-26.
The index for mortgage loan tumbled 12 points to minus 18 in the cited quarter as the spike in the market lending rate is forecast to discourage lenders from expanding the home-backed loan.
The lending demand index plunged from 23 in the first quarter to 9 in the second quarter.
The demand index for mortgage loan to households dropped from 9 in the first quarter to minus 12 in the second quarter, but the figure for credit loan to households gained from 12 to 15 as the economic slump from the COVID-19 pandemic increased loan demand.
The credit risk index stood at 26 for the second quarter, up 13 points from the previous quarter. It was attributable to the higher borrowing cost.
The index for households went up 15 points in the second quarter from the prior quarter, and the reading for small companies increased 5 points. The figure for big corporations was unchanged at 6.
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