S. Korean loans under spotlight
South Korean banks are expected to tighten loan standards in the third quarter, amid the government’s efforts to reduce household debts and stabilize the real estate market, a central bank survey showed on Thursday. The lending attitude index of commercial banks stood at minus 14 in the July-September quarter, down three points from the previous quarter, according to the Bank of Korea. The index below zero indicated more banks will tighten loan standards in the quarter than banks easing the standard. It was based on a survey of a total of 199 financial institutions, including banks, savings banks, credit card issuers and life insurers, conducted from May 29 to June 15.