Household loans extended by the banking sector have shrunk for the third consecutive month in what is considered an unusual trend.

According to data released by the Bank of Korea(BOK) on Thursday, outstanding bank loans to households stood at one-thousand-60-point-one trillion won as of the end of February, down one-hundred billion won from the previous month.

It marks the first time since the central bank began to compile related data in 2004 that banks' household loans have decreased for three months in a row.

A BOK official attributed the drop to a combination of factors including interest rate hikes and tightened loan regulations.

In February, home mortgage loans rose one-point-eight trillion won but other lending, including credit loans, fell one-point-nine trillion won, the sharpest ever decline for the month of February.

According to separate data by the Financial Services Commission and the Financial Supervisory Service, household loans extended by banks as well as other non-banking financial institutions were also down by some 200 billion won last month.