As household loans grow, rates drop
The average rate for new loans extended to households stood at 5.51 percent in May, down 0.03 percentage points from the previous month, according to the Bank of Korea. It marked the lowest level since the rate reached 5.37 percent in December.
The Bank of Korea froze the key interest rate at 3.25 percent for the 12th consecutive month in June in the face of the spiraling euro zone debt crisis and a slowing global economy.
The average rate for fresh lending to households and companies declined 0.05 percentage points on-month to 5.66 percent last month, it added.
Meanwhile, the average rate on bank deposits stood at 3.64 percent in May, down 0.06 percentage points from the previous month, as market interest rates declined.
Local lenders’ loan-deposit spread reached 2.85 percent in May, down 0.03 percentage points from April, the Bank of Korea said. Yonhap
More in Finance
Kospi breaks another record as buying spree continues
Samsung Life warned by the FSS about claim denials
Dollar's weakness pushes won to 30-month high
Kospi hits another high on chipmaker optimism
Eight companies agree to share credit card data