S.Korean banks’ lending rate for households hits over 9-year high

SEOUL: South Korean banks’ lending rate for households hit the highest in over nine years last month due to policy rate hikes, central bank data showed Tuesday, reported Xinhua.

The weighted average rate for new bank loans to households came in at an annualised rate of 4.52 per cent in July, up 0.29 percentage points from the previous month, according to the Bank of Korea (BOK).

It marked the highest in over nine years since March 2013 amid the higher policy rates.

The BOK delivered its first-ever 50-basis-point rate hike in July, before lifting the key rate further by 25 basis points to 2.50 per cent last week.

The rate for bank mortgage loans to households gained 0.12 percentage points over the month to 4.16 per cent in July, but the credit loans rate declined 0.09 percentage points to 5.91 per cent.

The weighted average rate for banks’ corporate loans increased 0.28 percentage points to 4.12 per cent last month, marking the highest in almost eight years since October 2014.

The rate for bank loans to big corporates advanced 0.25 percentage points to 3.84 per cent, while the lending rate for small firms gained 0.30 percentage points to 4.36 per cent. –Bernama