In March, the average interest rate on household loans by banks reached 4%, the highest level in 7 years and 10 months.
Corporate loan interest rates also rose to the highest in two years and six months, and both corporate and household loan interest rates rose. However, as the proportion of corporate loans with relatively low interest rates increased, the overall loan interest rate averaged to 3.50%, 0.01 percentage point lower than the previous month. was counted
According to statistics on the ‘March 2022 Weighted Average Interest Rate for Financial Institutions’ announced by the Bank of Korea on the 29th, the household loan interest rate (weighted average, based on the new transaction amount) of deposit banks was 3.98% per annum, 0.05 percentage points ( p) rose. This is the highest figure in 7 years and 10 months since May 2014.
Among household loans, the mortgage rate fell 0.04 percentage points from 3.88 percent to 3.84 percent, but the credit loan interest rate jumped 0.13 percentage points. During the same period, the general credit loan interest rate of 5.46% is the highest in 7 years and 8 months.
Despite the interest rate hike season, the proportion of household loans with variable rate loans rose 2.6 percentage points from the previous month to 80.5%, and the proportion of loans with high interest rates of 5% or more rose 2.3 percentage points from the previous month to 9.4%, the highest in more than eight years.
Song Jae-chang, head of the financial statistics team at the BOK’s Economic Statistics Bureau, said, “The interest rates on mortgage loans and guarantee loans fell due to the increase in preferential rates. As it rose, the overall household loan interest rate rose by 0.05 percentage points.”
The interest rate on corporate loans also rose by 0.02 percentage points from the previous month to 3.39 percent, the highest level in two years and six months since September 2019. Among corporate loans, the interest rate on loans to large corporations remained unchanged from 3.12% and the interest rate for loans to SMEs fell by 0.02 percentage points from the previous month. continued
The average interest rate for savings-type receipts (deposits) of banks also rose by 0.04 percentage points from 1.70% per annum to 1.74%. The increase in interest rates on market-type financial products was largely due to the rise in market interest rates. The loan-to-deposit margin decreased by 0.05 percentage points from the previous month to 1.76 percentage points.
On the other hand, on the basis of the balance, the total receiving interest rate was 0.96% and the total loan interest rate was 3.28%, which rose by 0.03 percentage points and 0.08 percentage points, respectively. As a result, the loan-to-deposit margin increased by 0.05 percentage points from the previous month to 2.32 percentage points, the highest in three years.
Team leader Song said, “The difference in interest rates based on new payments has decreased due to the expansion of preferential rates by banks, but the difference in interest rates on balances has increased. “He said.
Meanwhile, among non-bank financial institutions, the deposit interest rate of mutual savings banks (based on the new handling of one-year term deposits) was 2.50% a year, up 0.05 percentage points from the previous month ▲ Mutual finance 2.01% (0.04 percentage points) ▲ Credit unions 2.43% (0.07 points) % points) respectively. Saemaul Geumgo showed 2.45%, a decrease of 0.02 percentage points from the previous month.
The loan interest rate rose in the order of ▲Credit Cooperatives 4.47% (0.06% points) ▲ Mutual finance 3.96% (0.06% points) ▲ Saemaul Geumgo 4.48% (0.18% points) ▲ Mutual Savings Bank 9.24% (0.14% points).
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