South Korean households are expected to have a tougher time taking out loans from commercial banks in the first quarter as the government's strengthened measures to control household debts are apparently having an effect.

The Bank of Korea on Monday said the lending attitude index of local financial institutions stood at minus 18 for the January-March period, down ten points from the fourth quarter of 2017.

A reading below zero means banks planning to tighten loan standards outnumber those planning to ease them.

The BOK said the lenders are readjusting to the government’s strengthened management of household debts and growing credit risks triggered by interest rate hikes, adding it will become tougher for households to take out both general loans and mortgage loans. 

The household credit risk index for the first quarter stood at 23, up by four points from the previous quarter. A higher index means a higher credit risk.