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S.Korean banks' lending rate rises on policy rate hike

SEOUL
2021-12-30 14:37

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SEOUL, Dec. 30 (Xinhua) -- South Korean banks' lending rate rose last month following the policy rate hike, central bank data showed Thursday.

The weighted average rate for new bank loans to households was an annualized rate of 3.61 percent in November, up 0.15 percentage points from the previous month, according to the Bank of Korea (BOK).

It was the highest in almost three years since December 2018, driven by the benchmark interest rate hike.

The BOK raised its key rate from a record low of 0.50 percent to 0.75 percent in August, before lifting it further to 1.00 percent in November.

Rate for bank mortgage loans to households advanced 0.25 percentage points from a month earlier to 3.51 percent in November, marking the highest in over seven years since July 2014.

Rate for credit loans to households jumped 0.54 percentage points to 5.16 percent last month, logging the highest since September 2014.

The weighted average rate for bank corporate loans came in at an annualized rate of 3.12 percent in November, up 0.18 percentage points from the previous month.

Lending rate for big corporations gained 0.23 percentage points to 2.90 percent in the cited month, while the rate for small companies added 0.16 percentage points to 3.30 percent.
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