Bank lending to households in January saw the sharpest drop in 19 years thanks to a decline in demand for loans while more people paid down their debts.

According to a report released by the Bank of Korea(BOK) on financial market trends on Thursday, commercial bank loans extended to households reached roughly one-point-05 quadrillion won, or around 833 billion U.S. dollars, as of the end of January, down four-point-six trillion won from the previous month.

The drop in January was the sharpest to be recorded since related statistics began to be compiled in January 2004, reversing a 300 billion-won increase in December that was preceded by three months of decline from September to November.

Of the total household loans, the amount in mortgages remained the same from a month ago while other types of loans, including credit loans, fell four-point-six trillion won.

Non-mortgage loans posted the second-sharpest drop since 2004 as the amount shrank for the 13th consecutive month in January.

A BOK official said that credit loans saw a sharp drop due to seasonal factors, including bonuses handed out for the Lunar New Year holiday, which enabled households to repay debts.