[단독]Rising interest rates on loans due to the reference rate? One year higher interest rates

Contrary to the explanation of the financial authorities that the loan interest rate rose due to the reference rate determined in the financial market, it was found that the additional interest rate determined by the bank had a greater effect on the increase in the loan rate.

The loan interest rate is calculated by adding the market-determined standard interest rate, such as one-year bank bonds and COPIX, and the additional interest rate determined by the financial company in consideration of expenses and the borrower’s credit rating, and then subtracting the preferential rate granted when certain conditions are met. .

On the 18th, the financial authorities reported that the reference interest rate averaged 0.34 percentage points (p) using the credit loan statistics of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) for four months since June of this year, when the reference interest rate rose in earnest. When it rises, the spread rate rises on average by 0.09 percentage points, he said, indicating that the effect of the spread rate on the increase in loan interest rates was limited. He also drew a line saying that there is no room for the government to intervene because the interest rate is determined according to market logic. This was an explanation and position issued by the financial authorities when public dissatisfaction over the surge in lending rates as banks raised additional interest rates due to the government’s pressure to manage household debts.

but on the 21st <뉴스1>As a result of analyzing the credit loan interest rates (disclosed data of the Federation of Banks) of the five major banks for one year from September last year, when the loan interest rate bottomed and started to rise, from September last year to September this year, the increase in the additional interest rate was 0.39%p on average (preferential interest rate 0.04%). p), which is higher than the average rate of increase of the reference interest rate of 0.36%p. In other words, the increase in the loan interest rate had a greater effect on the spread rate. If microfinance products are included, when the reference interest rate rises by 0.36%p, the additional interest rate rises by 0.49%p (including the reduction of the preferential rate by 0.07%p), further widening the gap.

Despite the pressure from the financial authorities to manage household debt, banks started to raise additional interest rates from the end of last year, increasing the burden on borrowers. Criticism is also raised. There are also growing voices calling for a responsible response from the financial authorities to alleviate the burden on borrowers and address the excessive interest income of banks.

View of the Financial Services Commission. © News1

According to statistics from the Bank of Korea, the interest rates on credit loans in banks have already bottomed out in September of last year and started to rise in earnest. It rose 1.26%p (2.89% → 4.15%) for the first time in one year until September of this year. During this period, the five major banks raised the additional interest rate by 0.35%p from 2.66% to 3.01%, and lowered the preferential rate by 0.04%p from 1.06% to 1.02%. Combining the two is equivalent to a 0.39%p increase in the additional interest rate. During the same period, the reference interest rate rose 0.36%p from 0.78% to 1.14%, resulting in a further increase in the additional interest rate. If microfinance products are included, the additional interest rate rises by 0.49%p (including the reduction of the preferential interest rate by 0.07%p), which makes the gap wider.

As the Financial Supervisory Service (FSS) strengthened household loan management in earnest from September last year, such as instructing commercial banks to submit their credit management status, banks began to compete to raise additional interest rates and lower preferential rates. Then, when the Financial Services Commission announced the ‘household debt management plan including credit loans’ on November 13, the additional interest rate rose further. This year too, the ‘household debt management plan’ on April 29th and the ‘household debt management reinforcement plan’ on October 26th came out one after another, and banks continued to raise the loan threshold.

An official from the financial sector said, “The increase in the additional interest rate at banks is not a problem from June of this year, as the statistics presented by the financial authorities.” “There are voices complaining about the burden,” he said.

“June of this year was a time when the reference rate started to rise relatively due to the Bank of Korea’s remarks about raising the base rate,” he said.

Despite the clarification from the financial authorities, criticism of the loan interest rate did not stop, and the Financial Supervisory Service (FSS) convened an emergency meeting of bank executives on the 19th to come up with a countermeasure. The meeting was attended by vice presidents in charge of credit from eight banks.

Chan-woo Lee, senior vice president of the Financial Supervisory Service, said, “We will check whether each bank’s loan interest rate calculation is done faithfully in accordance with the best standards at the business site, and if necessary, we will improve it.”

jhkuk@news1.kr