Bank‍ loans and deposit‌ rates in South Korea experienced ​a decline last month, reflecting ‌ongoing trends in the market interest ⁢rate surroundings.

According ⁢to‌ data ‍released by the ‍bank of Korea (BOK) on Thursday, deposit banks’ February interest⁢ rate ⁣for savings ‌deposits decreased by 0.10 percentage points, falling from 3.07%⁢ to 2.97%. this⁤ decline is attributed to a drop in overall market interest rates, marking the ⁣fifth​ consecutive month ‌of decrease since October of the ⁣previous⁢ year.

Specifically, pure savings deposits,​ such as regular deposits, saw a decrease of 0.11 percentage points, settling at 2.97%. Market-based ⁤financial products, including ⁢financial bonds and certificates of‌ deposit (CDs), also experienced a decrease, falling by 0.07⁣ percentage points to ⁢2.97%.

household⁤ loan rates also saw a decrease, with the ‍rate for new ‍loans falling by 0.13 percentage points to 4.52%.⁣ This ‌marks the third consecutive month of decline.

Within the household loan sector, mortgage loan ‌rates decreased by 0.04 percentage points to 4.23%, while general credit loan rates fell by 0.08 percentage points ​to 5.50%.

According ​to a representative from the BOK, The ⁤household loan rate has lowered ‍0.13 percentage points, especially with ⁤the ⁤interest rate of bank ⁤bonds and indicators such as COFIX.

Corporate loan interest rates also experienced a decrease, ‌falling by 0.07 percentage points ‌to‍ 4.43%.This decline has been consistent for the past three months. ‌Interest rates for large companies and small and medium-sized enterprises (smes) decreased by 0.07 and 0.08 percentage points,respectively.

the interest rate for all ​bank loans, encompassing both household and corporate loans, decreased by 0.07⁣ percentage points, ⁣falling from 4.53%⁢ to 4.46%⁢ month-over-month.

The spread between bank-based loan rates and ​savings deposit rates, representing ⁢the interest rate differential⁢ for banks, stood⁢ at ‌1.49 percentage points. This⁢ is ​0.03 percentage‌ points higher⁤ then⁤ the previous ⁤month’s figure of 1.46 percentage points,indicating that the⁤ decline in deposit rates⁤ is outpacing ⁢the decline in loan rates for the sixth consecutive month.

Though, the outstanding balance rate differential,‍ as opposed to the new handling standard, decreased by 0.04 percentage points,falling from ‍2.28 percentage‌ points to 2.24 ‌percentage points.

Deposit rates for other financial ​institutions,based on one-year deposits,also experienced declines. Mutual‍ savings banks saw a decrease⁢ of 0.20 percentage points to 3.10%, credit cooperatives‍ decreased by 0.02 percentage points ​to 3.36%, mutual‌ finance institutions decreased ⁤by 0.05 percentage ‌points to 3.17%, and​ Saemaul Undong experienced a decrease of 0.03 percentage points to 3.38%.

Regarding loan interest rates among these institutions, mutual savings banks saw a decrease ⁣of‌ 0.66 percentage points to 11.22%, and mutual finance institutions decreased by 0.05 percentage points to⁤ 4.84%. Saemaul Undong experienced an increase of 0.02 percentage points to 4.96%,while credit cooperatives⁣ remained unchanged at 5.05%.

What Were teh ​Primary Trends in South‌ Korean Bank Rates ​in February?

In February 2025, both bank loan and deposit⁣ rates in South Korea experienced a decline.This ‍trend reflects the​ ongoing⁢ influence of market interest​ rates on⁣ banking activities, as reported by the Bank of‌ Korea (BOK).

How ​Did Deposit Rates ‍Change?

Deposit banks’ February interest rate for savings deposits⁣ decreased by 0.10 percentage points, falling‍ from⁢ 3.07% to 2.97%. ‌This marks the fifth​ consecutive month of⁤ decrease⁢ since October of the previous year. specifically:

• Pure savings deposits (regular deposits) decreased by 0.11 percentage points, settling at 2.97%.
• Market-based financial products‌ (financial bonds and CDs) decreased ⁤by 0.07 percentage points to 2.97%.

What Happened to Household Loan Rates?

Household loan rates also saw a decline ‍in February. The rate for new‍ loans fell by 0.13 percentage⁢ points to 4.52%, marking the‌ third consecutive month​ of decline. Key components ‌include:

• mortgage loan⁣ rates decreased by 0.04 percentage points to 4.23%.
• General credit ⁤loan​ rates fell by 0.08 ‌percentage points to 5.50%.

A‌ representative from the ⁢BOK noted the influence of factors like bank bonds ⁤and COFIX on these rates.

How Did Corporate Loan Rates Perform?

Corporate loan‍ interest‍ rates also decreased,falling by 0.07 percentage points to 4.43%. This ⁤marked the third consecutive ‌month of ​decline. Interest rates for larger‍ companies and ⁢SMEs decreased‌ by 0.07 and ‍0.08 percentage points, respectively.

Overall Loan⁢ Rate Trends

The interest rate for all​ bank loans, encompassing‍ both household​ and corporate loans, decreased by 0.07 percentage points, falling from 4.53% to ⁣4.46% month-over-month.

What Was the Spread Between Loan and Deposit Rates?

The spread between bank-based loan rates ‍and savings deposit​ rates stood at 1.49 percentage points. This is 0.03 percentage points higher then the previous month’s figure (1.46 percentage ‌points). This suggests that the decline in deposit rates is outpacing the decline in ⁣loan ⁤rates for the sixth consecutive month.

How Did Other Financial Institutions Fare?

Deposit rates for other financial institutions (based ⁤on ⁣one-year deposits) also ⁢declined. These institutions and their changes include:

• Mutual savings banks: decreased by 0.20⁢ percentage ⁣points to 3.10%
• Credit cooperatives: decreased by 0.02 percentage points to 3.36%
• Mutual finance institutions: decreased by 0.05 percentage points‌ to 3.17%
• Saemaul⁢ Undong:‍ decreased​ by 0.03 percentage⁣ points to 3.38%

loan⁢ Interest⁤ Rate Changes Among Other Financial Institutions

the⁢ loan interest rate⁤ changes ‌were:

• Mutual⁢ savings⁤ banks: decreased by 0.66 percentage points ⁤to⁣ 11.22%
• Mutual finance institutions:​ decreased by 0.05 percentage points⁤ to 4.84%
• Saemaul undong: increased by 0.02 percentage points to ⁣4.96%
• Credit cooperatives: remained unchanged at 5.05%

Key ‍Rate Changes: Summary Table