Bank of Korea

Demand for other loan types fell, however.

Household loan growth has slowed as borrowing costs rose, according to Yonhap.   Banks in South Korea are expected to further ease lending in the third quarter, even as credit risks are expected to rise, reports Yonhap, based on a survey conducted by the Bank of Korea (BOK).   An index gauging banks’ attitude toward home-backed loans and unsecured household lending stood at 14 and 19, respectively, for the July-September period, according to the findings of a poll of officials handling credit affairs at financial institutions (FIs)—which include 18 banks.   A reading above zero means the number of lenders that will ease lending surpasses that of banks planning to tighten lending criteria. 

Average interest rate for new deposits rose 15 basis points from April.

The loan rate averaged 3.63% in December, 0.12 ppt higher than a month earlier.

This marked the first on-month decline for a month of December since 2004.

This was thanks to a rise in loans made to the service sector during the period.

The 3.26% interest rate average is its highest since November 2018.