Businesses and households will likely have difficulties borrowing money from banks this year.

Local banks projected that households’ credit risk will hit a 13-year high in the first quarter of this year, the highest since the third quarter of 2003.

According to the Bank of Korea on Wednesday, domestic banks’ lending sentiment index for the first quarter was minus 19.

A negative level index means that banks stating they will strengthen lending standards outnumber those that will not.