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S.Korean banks' lending rate hits record low in March

Xinhua News,SEOUL
2020-04-29 14:58

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SEOUL, April 29 (Xinhua) -- South Korean banks' lending rate hit a record low last month as the benchmark interest rate was slashed to an all-time low to tackle an economic fallout from the COVID-19 outbreak, central bank data showed Wednesday.

An annualized lending rate by banks averaged 2.91 percent in March, down 0.17 percentage points from the prior month, according to the Bank of Korea (BOK).

It was the lowest since relevant data began to be compiled in 1996. The BOK cut its key rate by 50 basis points to an all-time low of 0.75 percent last month in its first emergency move since the 2008 global financial crisis.

The average lending rate for companies declined 0.25 percentage points from a month earlier to 2.94 percent in March, while the rate for households fell 0.02 percentage points to 2.88 percent.

Banks' deposit rate averaged an annualized 1.27 percent in March, down 0.16 percentage points from a month ago. It was the lowest since data began to be compiled.

The lending-deposit margin stood at 2.16 percentage points in March, down 0.02 percentage points from the prior month.
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