The lending attitude index came in at 6 for the July-September quarter, down 13 points from the previous quarter, according to the Bank of Korea (BOK) survey of 204 banks and other financial institutions, conducted from June 15 to June 30.
The index declined for the third quarter, but the reading stayed above zero, indicating that lenders willing to ease loan standards outnumber those willing to tighten them.
The year-over-year growth rate of banks' household loans slowed from 6.2 percent in January to 2.8 percent in April amid the policy rate hikes to curb surging inflation.
The BOK has raised its key rate five times since August last year. Expectations ran high for the central bank to hike rates further later this year.
The lending attitude index for mortgage loans to households retreated to 14 for the third quarter from 31 in the previous quarter, while the index for credit loans was unchanged at 19.
Banks planned to tighten the lending standard for corporate loans amid growing worries about a global economic slump.
The lending attitude index for bank loans to big corporations declined to minus 6 for the third quarter from 3 in the second quarter, while the index for small companies shrank from 6 to minus 6.
The credit risk index for household and corporate loans advanced from 26 in the second quarter to 38 for the third quarter, while the lending demand index gained from minus 6 to minus 2.
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