Lending standards for households registered a net tightening in the last quarter of 2013, the central bank said yesterday.
Results of the Senior Bank Loan Officers’ Survey for the fourth quarter of 2013, attributed the tighter lending standards for household to “perceived stricter financial system regulations and reduced tolerance for risk of banks.”
“In particular, banks’ responses indicated overall stricter collateral requirements for loans extended to households along with unchanged maturity period for loans on the whole,” the central bank said.
The report said the current lending standards for household is seen to continue in the first quarter of 2014.
“Expectations of unchanged tolerance for risk and steady economic outlook were among the factors cited for said result,” the central bank said in a statement.
On the other hand, lending standards for enterprises from October to December last year was steady.
Banks traced this to “steady outlook on the domestic economy as well as specific industries, including manufacturing and real estate, unchanged tolerance for risk, and unchanged view on profile of borrowers.”
The central bank said collateral requirements and loan covenants with enterprises are also unchanged.*PNA