S.Korean banks' lending to households keeps falling for 4 months

South Korean banks' lending to households kept falling for four straight months owing to higher borrowing cost, central bank data showed Wednesday.

Debts, owed by households to banks, amounted to 1,059 trillion won (863.8 billion U.S. dollars) at the end of March, down 1 trillion won from a month earlier, according to the Bank of Korea (BOK).

The figure continued to slide for the fourth consecutive month amid the higher benchmark interest rate.

The BOK raised its policy rate by a quarter percentage point to 1.25 percent in January, after lifting it by 25 basis points in August and November last year.

Mortgage loan to households gained by 2.1 trillion won last month, but credit loan slumped by 3.1 trillion won.

Housing prices recently turned downward amid the higher borrowing cost, the government's efforts to curb home-backed loans and the lackluster real estate market.

Meanwhile, corporate loan by banks stood at 1,093.9 trillion won at the end of March, up 8.6 trillion won from a month earlier. (1 U.S. dollar equals 1,226.33 won)