Interest rates negotiated in October ranged from 5.74 to 11.1%
it is expected to continue to rise for some time
| Promotional material for loan interest rates at a bank in downtown Seoul.[연합] |
[헤럴드경제=김성훈 기자] As the benchmark interest rate rose rapidly, the top end of the average bank credit loan interest rate was more than 11%.
According to the Korea Banks Federation on the 2nd, the average interest rate excluding microfinance among credit loans negotiated by 18 domestic banks during October ranged from 5.74% to 11.10%.
Jeonbuk Bank has the highest average interest rate at 11.10%. Jeonbuk Bank’s average interest rate was 9.72% in September, but rose by 1.38 percentage points (p) in the past month.
Jeonbuk Bank also applied an interest rate of 8-9% to high credit customers with a credit score of 900 or higher. Borrowers with 951 to 1000 points accounted for 8.29%, and borrowers with 901 to 950 points accounted for 9.00%. This is higher than other banks that applied 5-6%.
In addition to Jeonbuk Bank, Daegu Bank and Kwangju Bank had high rates of 8.84% and 8.41%, respectively. They also found that the average interest rate of Toss Bank, an Internet bank, was 8.16%.
Credit interest rates are expected to rise further. This is because the COFIX (funding cost index), which is the basis for calculating interest rates, continues to rise. The new October Cofix handling amount standard announced on the 15th of last month by the Federation of Banks was 3.98%, the highest since the announcement.
Expectations are rising that the pace of interest rate rises will be somewhat delayed, but high interest rates are expected to continue next year as it is difficult to expect a rate cut for now.
As a last resort, the government advises banks not to compete for deposit interest rates. This is because when the deposit rate rises, the COFIX rises, leading to an increase in the lending rate. As a result, commercial banks released one-year term deposits in the 5% range last month, but the interest rate fell again.
paq@heraldcorp.com
