Authorities judge that the additional interest rate is not excessive… “No artificial intervention in market interest rates”
Civic groups, the additional interest rate soared from 2-3 years ago… “Suspect that the bank will turn a blind eye to the interest banquet”
(Seoul = Yonhap News) Reporter Chae-rim Ha = Driven by public opinion criticizing the soaring loan interest rate, the financial authorities began to check the interest rate calculation and operation system of commercial banks, but there is still a big difference in perceptions with consumers on the interest rate issue.
The Financial Supervisory Service (FSS) announced on the 19th that after a meeting with the vice presidents in charge of credit at eight commercial banks, it would check the loan rate operating systems of commercial banks to see if they conform to the best lending rate standards.
The model standard for loan interest rates is a self-regulation that includes various factors and operating standards that calculate additional and preferential rates.
The meeting was held amid rising consumer complaints that the loan interest rate has recently risen rapidly and that the bank is taking excessive profits due to the widening gap between the loan rate and the deposit rate.
However, even at this meeting, it is reported that the financial authorities did not express an opinion to be wary of the ‘interest party’ of the banking sector.
An official from the financial authorities said in a phone call with Yonhap News on the 21st, “There was no discussion in particular about whether the current loan-to-deposit interest rate difference was excessive at a meeting with the vice president in charge of bank credit on the 19th.”
Another financial authority official said, “The difference in the loan-to-deposit interest rate has not expanded significantly recently, and the sharp rise in bank profits is due to the increase in loan assets rather than the difference in the loan-to-deposit interest rate.”
There was no significant change in the difference in the loan-to-deposit interest rate and interest income increased due to the increase in household loans.
The Financial Services Commission said on the 18th that the increase in the loan interest rate from June to October of this year is not due to a large increase in the additional interest rate, but rather the reference rate applied when a bank raises the necessary funds for a loan (one-year government bonds, co-fixes, one-three-year bank bonds). He said it was because he was right.
Although the financial authorities announced this inspection plan, they did not show much expectation about the effect.
In particular, he stressed the need to face the reality that if the Bank of Korea raises the base rate further due to inflationary pressure, the loan interest rate will inevitably rise further.
An official from the financial authorities said, “The interest rate is determined by the market’s supply and demand of funds. There is no way to artificially lower it.”
He added, “This inspection is not for the purpose of lowering the lending rate of banks, but rather to look at the basic operating systems of banks (for additional interest rates and preferential rates, etc.).”
According to the FSC announcement or the results of meetings with the Financial Supervisory Service and the banking sector, the financial authorities believe that the current bank’s added rate or the difference in interest rates on deposits is not excessive, and adheres to the principle of not artificially intervening in market interest rates.
Consumers and civic groups differ from those of financial authorities.
According to the Solidarity for Financial Justice, the final additional interest rate (additional rate – adjusted interest rate) for credit loans (grades 1 and 2) of Kookmin, Shinhan, and Woori banks last month increased by 0.25 to 0.81 percentage points (p) from October last year. Annual interest rates are on the rise.
In addition, he pointed out that the difference in the loan-to-deposit interest rate between banks expanded from 1.38% at the end of 2019 to 1.89% at the end of last year, and continues to rise to 2.01% in September of this year.
The FSC explained that the spread did not rise much based on interest rate fluctuations in the past four months, but if you look at the long time series, the increase is large.
The group argued, “The results of the meeting between the Financial Supervisory Service and commercial banks are a repetition of ‘the market’s autonomous decision’.
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2021/11/21 06:17 Send