Refer Report
Since last July, commercial banks have been putting ‘household loan management’ at the forefront and competitively raising interest rates on home mortgage loans and guaranteed loans (including jeonse funds) under the pretext of “preventing the concentration of loans to specific banks with low interest rates.” In fact, savings deposit interest rates are falling. In the recent phase of household loan management, another unexpected repercussion appears to be emerging: the ‘widening deposit-to-loan interest rate gap’.
Looking at the data on term deposit interest rates (12-month maturity, simple interest basis, regardless of subscription method, as of September 20) registered and announced by each bank at the Korea Federation of Banks on the 30th, Shinhan Bank’s ‘Convenient Term Deposit’ has an annual base interest rate of The highest preferential interest rate is 2.65% and 3.33%. The average interest rate (excluding the preferential interest rate applied at maturity) of this deposit product, which was newly introduced in August, was 3.34% per annum. The highest preferential interest rate that can be received if you sign up now is lower than the average interest rate that was applied to new customers who signed up a month ago.
Hana Bank’s ‘Hanai Term Deposit’ also had a basic interest rate of 2.60% per annum in September and the highest preferential interest rate of 3.35%, and the average interest rate handled in the previous month was 3.35%. KB Kookmin Bank’s ‘KB Star Term Deposit’ also had a basic interest rate of 2.50% per annum and a maximum preferential interest rate of 3.35% in September, but the average interest rate handled in the previous month was 3.35%. For both deposit products, the highest preferential interest rate that can be received if you sign up now, including the preferential interest rate at maturity, is lower than the average interest rate received by customers who already signed up in the previous month.
Interest rates on savings products are also falling. As of the 20th, the basic interest rate for Hana Bank’s ‘My Heart Savings’ (24 months, free savings, simple interest basis) is 2.60% per year, and the highest preferential interest rate is 3.10%, and the highest interest rate is the average interest rate of this product for new transactions in August (3.45%). %). The basic interest rate of Kookmin Bank’s ‘Kookmin Super Term Deposit’ (individual, maturity payment, 1 to 2 years) fell from 2.70% (before tax) per annum in July to 2.50% after August.
According to the Bank of Korea, the deposit bank’s interest rate for term deposits (1 year) based on new handling amounts continues to fall from 3.61% per annum in May to 3.54% in June, 3.42% in July, and 3.36% in August. The interest rate for term deposits (3-4 years) based on the new amount also fell from 4.24% per annum in June to 4.21% in July and 4.07% in August.
Lee Bok-hyeon, head of the Financial Supervisory Service, appeared on KBS’ ‘Sunday Diagnosis Live’ on August 25 and said, “I know there is criticism that there is policy inconsistency as banks raise lending rates (to manage household loans) even though market interest rates have recently fallen. . However, raising interest rates on banks’ household loans is not what the government wanted. “I understand that there are complaints from consumers that some kind of distortion has occurred, such as the widening interest rate gap between deposits and loans, and interest rates in first-tier financial institutions being higher than those in second-tier financial institutions,” he said.
Senior Reporter Jo Gye-wan kyewan@hani.co.kr
Source: Korean