ID :
185221
Mon, 05/30/2011 - 07:13
Auther :
Shortlink :
https://oananews.org//node/185221
The shortlink copeid
Bank lending rates fall in April
SEOUL, May 30 (Yonhap) -- South Korean banks' lending rates declined in April from a 13-month high seen in March mainly because banks competitively tried to expand loans, the central bank said Monday.
The average rate for new loans extended to households and companies came in at 5.7 percent in April, down 0.08 percentage point from the previous month, according to the Bank of Korea (BOK). The April rate snapped the fourth consecutive monthly gain of the lending rate seen in March.
"Local banks extended loans to larger firms last month with lower charges and they also lowered the spread on lending rates for smaller firms," said Moon So-sang, an official at the BOK.
In May, the central bank froze the key interest rate at 3 percent for the second consecutive month due to economic uncertainty including the eurozone debt crisis.
In April, market rates for certificates of deposit, which are tied to banks' mortgage lending rates, fell by 0.03 percentage point to 3.6 percent.
The rate on mortgage loans, which account for the bulk of banks' household lending, climbed by 0.01 percentage point to 4.88 percent in April, the BOK added.
Meanwhile, the average rate on bank deposits came in at 3.68 last month, up 0.01 percentage point from the previous month and the highest level since 3.87 percent in January 2010.
South Korean lenders' loan-deposit spread, a gauge of banks' profitability from lending, reached 3.01 percent last month, wider than 3 percent in March, the BOK said.
The average rate on savings bank deposits came in at 5.01 percent as of end-April, down 0.15 percentage point from the previous month.
"In March, savings banks sharply raised the deposit rate in a bid to secure customers' money after they underwent massive deposit withdrawals during the previous two months. But the rate fell in April as it seemed that they could not cope with a sharp rise in borrowing costs," she said.
The government has suspended operations of eight ailing savings banks since January as they are staggering under mounting soured property-linked loans and worsening asset quality. One of them was sold to state-run banking group Woori Finance Holdings Co. and the government is seeking to put the remainder up for sale.
sooyeon@yna.co.kr
(END)
The average rate for new loans extended to households and companies came in at 5.7 percent in April, down 0.08 percentage point from the previous month, according to the Bank of Korea (BOK). The April rate snapped the fourth consecutive monthly gain of the lending rate seen in March.
"Local banks extended loans to larger firms last month with lower charges and they also lowered the spread on lending rates for smaller firms," said Moon So-sang, an official at the BOK.
In May, the central bank froze the key interest rate at 3 percent for the second consecutive month due to economic uncertainty including the eurozone debt crisis.
In April, market rates for certificates of deposit, which are tied to banks' mortgage lending rates, fell by 0.03 percentage point to 3.6 percent.
The rate on mortgage loans, which account for the bulk of banks' household lending, climbed by 0.01 percentage point to 4.88 percent in April, the BOK added.
Meanwhile, the average rate on bank deposits came in at 3.68 last month, up 0.01 percentage point from the previous month and the highest level since 3.87 percent in January 2010.
South Korean lenders' loan-deposit spread, a gauge of banks' profitability from lending, reached 3.01 percent last month, wider than 3 percent in March, the BOK said.
The average rate on savings bank deposits came in at 5.01 percent as of end-April, down 0.15 percentage point from the previous month.
"In March, savings banks sharply raised the deposit rate in a bid to secure customers' money after they underwent massive deposit withdrawals during the previous two months. But the rate fell in April as it seemed that they could not cope with a sharp rise in borrowing costs," she said.
The government has suspended operations of eight ailing savings banks since January as they are staggering under mounting soured property-linked loans and worsening asset quality. One of them was sold to state-run banking group Woori Finance Holdings Co. and the government is seeking to put the remainder up for sale.
sooyeon@yna.co.kr
(END)
