S.Korea's lending demand expected to rise in Q1

0 Comment(s)Print E-mail Xinhua, January 13, 2021
Adjust font size:

SEOUL, Jan. 13 (Xinhua) -- South Korea's lending demand is expected to rise in the first quarter on robust demand for home purchase and stock investment with borrowed money, a central bank poll showed Wednesday.

The lending demand index for mortgage loan among households stood at 3 in the January-March quarter, according to the Bank of Korea (BOK).

The reading was down from 24 tallied in the previous quarter, but it stayed above zero, indicating that local lenders expecting higher lending demand outnumbered those predicting lower demand.

The index for credit loan among households declined to 18 in the first quarter from 44 in the previous quarter, but it hovered above 100, heralding a higher demand for credit loan.

The results were based on a survey of 201 financial institutions, including 17 commercial banks and other lenders.

The expectation for higher loan demand was attributed to households that rushed to purchase home and invest in stocks with borrowed money amid a record-low policy rate.

The BOK left its target rate unchanged at an all-time low of 0.50 percent since May last year.

The lending demand index among big corporations rose from minus 3 in the fourth quarter of last year to 9 in the first quarter of this year, while the index among small firms advanced from 18 to 26 in the same period.

Lenders are forecast to tighten lending standard in the first quarter amid uncertainty over the COVID-19 pandemic.

The lending attitude index, which gauges loan standard among lenders, came in at minus 3 for big corporations in the first quarter, unchanged from the previous quarter.

The index for small firms stood at minus 6 in the first quarter, while readings for mortgage loan and credit loan to households came to minus 6 and minus 12 respectively. Enditem

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter