The lending attitude index recorded minus 5 in the fourth quarter, down from zero in the third quarter, according to the Bank of Korea (BOK).
The reading below zero indicates that lenders plan to tighten lending standard. The results were based on a survey of 17 local banks and other domestic lenders conducted from Sept. 14 to Sept. 25.
The index for small companies tumbled from 12 in the third quarter to minus 3 in the fourth quarter, but the figure for big corporations was unchanged at minus 3.
The reading for mortgage loan to households rose from minus 18 to minus 6 in the cited period, but the index for credit loan to households plunged from 9 to minus 9 in the period.
The credit risk index remained in a relative high level of 24 in the fourth quarter. It was down from 31 tallied in the third quarter.
The COVID-19 pandemic is expected to weaken corporate profitability and household income, the BOK said.
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