Banks’ rates dipped a bit in April after March rise

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Banks’ rates dipped a bit in April after March rise

Korean banks’ average lending rate fell in April from the previous month mainly due to a dip in rates offered to businesses and households, the central bank said yesterday.

The average interest rate on new household, corporate and public sector loans stood at 5.71 percent last month, down 0.03 percentage point from a month earlier, according to the Bank of Korea.

The bank lending rate on new household loans fell 0.08 percentage point to 5.54 percent, with the interest on fresh corporate loans moving down 0.03 percentage point to 5.76 percent, the central bank said.

The average rate offered to public companies and miscellaneous loans stood at 5.53 percent, an increase of 0.58 percentage point from the previous month.

“Lenders lowered rates on loans offered to companies after they raised them to 5.79 in March, while numbers for households fell for two straight months,” the BOK said.

The central bank also said the interest rates on loans extended by savings banks averaged 15.56 percent last month, up 0.68 percentage points from the month before.

The average lending rate charged by domestic credit unions fell 0.10 percentage point to 7.16 percent, with the figure for mutual credit unions dipping to 6.23 percent from 6.25 percent tallied for March, according to the BOK.

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