(Seoul=NSP News Agency) soon ki Lee Journalist = According to the Bank of Korea, credit risk in the second quarter of this year is expected to be higher than in the previous quarter for both businesses and households.
According to the “2022 1Q Loan Behavior Survey Results” released by the Bank of Korea on the 11th, companies’ credit risk is expected to expand centered on small and medium-sized companies in the 2nd quarter.
The BOK explained, “Companies’ credit risk will expand due to the continued uncertainty of internal and external economic conditions and the deterioration of the debt repayment ability of some vulnerable industries and the small business owners.”
Household credit risk is also expected to expand due to the rising interest rates on loans.
During the second quarter, domestic banks’ lending attitudes toward companies are expected to ease for both large companies and small and medium-sized companies.
In the case of small and medium-sized companies, they have remained flat since the second half of last year, ahead of the end of financial support measures, but they are expected to ease in the second quarter as additional extension plans are announced.
Loan attitude towards households has continued to be strengthened in accordance with household loan management policies, but it is expected to ease as household loan regulations are expected to be adjusted along with the recent slowdown in household loan growth.
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