[이데일리 이윤화 기자] Last month, the loan interest rate increased further from September due to the financial sector’s loan regulation policy and the rise in market interest rates following the Bank of Korea’s base rate hike. Interest rates on mortgages and credit loans rose to the low 3% range and mid-4% range. It rose to the highest level in 3 years, 2 years and 7 months, respectively. The corporate loan interest rate also reached the highest level since March last year, with the average loan interest rate rising from the high 2% range to the 3% range. It is the first time in one year and eight months since February last year that the average interest rate on loans exceeded 3%.
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◇The average interest rate on loans exceeds 3% in 1 year and 8 months… steep ascent
According to the ‘October Weighted Average Interest Rates for Financial Institutions’ released by the Bank of Korea on the 26th, the average interest rate on loans by deposit banks last month (based on new transactions) was 3.07%, up 0.11 percentage point from the previous month. The upward trend was greater than the increase in September (0.09 percentage points). The average interest rate on loans exceeded 3% for the first time since February last year (3.08%).
In October, the rate of increase in household loan rates was greater than that of corporate loans. The interest rate on household loans stood at 3.46%, up 0.28 percentage points from the previous month. This is the fifth month of upward trend. The increase was also more than three times larger than in September (0.08%). This is the largest increase since May 2015 (0.31 percentage points).
Among them, the interest rate on home mortgage loans rose by 0.25 percentage points to 3.26%, and the interest rate on credit loans rose by a whopping 0.47 percentage points to 4.62%, reaching the 5% level for half a year. This is the highest level since November 2018 (3.28%) and March 2019 (4.63%), respectively. It is the largest increase recorded since May 2015 (0.25 percentage points) and December 2020 (0.49 percentage points). In addition to main loans and credit loans, all other loans rose except for deposits and savings-backed loans (-0.02% point). Microloans rose 0.06 percentage points to 5.04 percent, exceeding the 5 percent level, and group loans and guaranteed loans rose 0.52 percentage points and 0.17 percentage points to 3.71 percent and 3.09 percent, respectively.
The proportion of high-interest loans among household loans has also increased. The proportion of high interest rates of 5% or higher increased from 5% in September to 7% in October, the highest level since May 2019 (7.1%).
Song Jae-chang, head of the Bank of Korea’s financial statistics team, said, “The increase in credit loan interest rates was large due to the expansion of loans to low- and medium-credit borrowers, such as the expansion of medium-rate loans. It is understood that the overall amount of group loans has decreased and the additional interest rate has been raised,” he said.
The interest rate on corporate loans also rose to 2.94%, up 0.05 percentage points from the previous month, the highest level since March last year (2.94%). However, the increase was smaller than in September (0.10 percentage points), which resulted in a 0.03 percentage point increase in loan interest rates for large corporations due to the decline in the delinquency rate of some banks. This is due to the fact that the increase is lower than in the previous month.
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Five-year bank bonds rose 38bp in October… Loan interest rates expected to rise in November
The overall increase in loan interest rates last month was due to the increase in the benchmark interest rate due to the BOK’s increase in the base rate and the regulatory policy of the financial authorities to curb household loans. because it has risen
The yield of a five-year bank bond, which is the standard for the fixed rate of mortgage loans, rose from 1.52% in January this year to 2.40% in October. Compared to September (2.03%), it showed an increase of 0.38 percentage points, a significant increase. The COPIX interest rate, the main index for variable loans, also rose 0.13 percentage points from September to 1.29%, rising to the 1.2% range. In the variable rate index, the yield on the 91-day certificate of deposit (CD) rose 0.10 percentage point to 1.08%, rising to the 1% range. Six-month bank bonds and one-year bank bonds also rose 0.12 percentage point and 0.15 percentage point.
The deposit interest rate for savings accounts also rose 0.12 percentage points from the previous month to 1.29 percent. It rose to the 1% level in August, breaking the 0% level zero interest rate for the first time in 1 year and 3 months, and it is the second consecutive month of increase. The increase in market interest rates following the base rate hike and efforts to manage liquidity resulted in a 0.12 percentage point increase in net savings deposits, led by time deposits, and a 0.11 percentage point increase in market-type financial products, led by financial bonds and CD interest rates. The difference between the loan-to-deposit interest rate, which shows the difference between the loan interest rate and the savings-type receipt rate, was 1.78 percentage points, down by 0.01 percentage point from the previous month.
Meanwhile, the BOK held a regular meeting of the Monetary Policy Committee on November 25 and raised the base rate by 0.25 percentage points from 0.75% to 1.00%. The era of zero interest rates came to an end after about 1 year and 8 months. However, the interest rate on the 3-year Treasury bond fell to the 1.9% range and the 2.3% range, which is the effect of partially reversing the rise in interest rates, which had risen sharply due to excessive concerns in the market. Although the market interest rate surge has stopped, the Bank of Korea predicts that the lending rate of banks is highly likely to rise in November. This is because the Bank of Korea is expected to continue raising the base rate until next year, while the financial authorities will continue to work to regulate the total amount of loans.
Song Jae-chang, team leader, said, “Yesterday (the market interest rate despite the BOK’s base rate hike) fell, but the overall index rate in November is showing an upward trend. said
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