S.Korea's household lending rate hits record low in May

Jun 30, 2020

World
S.Korea's household lending rate hits record low in May

Seoul (South Korea), June 30: South Korea's household lending rate hit a record low last month as the policy rate was cut to a new record low, central bank data showed Tuesday.
Rate for new household loans extended by banks averaged an annualized rate of 2.81 percent in May, down 0.08 percentage points from the previous month, according to the Bank of Korea (BOK).
It was the lowest since data began to be compiled in January 1996. The record-low lending rate came as the BOK slashed its key rate to an all-time low of 0.50 percent in May, after lowering it by 50 basis points to 0.75 percent in March.
Rate for banks' mortgage loan to households declined 0.06 percentage points over the month to 2.52 percent in May.
However, rate for banks' lending to companies gained 0.06 percentage points to 2.83 percent in the cited month.
Rate for loan to big corporations rose 0.10 percentage points to 2.75 percent, and the rate for loan to small firms added 0.02 percentage points to 2.88 percent.
Banks' deposit rate retreated 0.13 percentage points over the month to 1.07 percent in May, the lowest since data began to be compiled in 1996.
Source: Xinhua News Agency