I was told that if I entrusted 100 million won, I would get 6 million won… Why did banks lower interest rates?

The deposit interest rates of the four major commercial banks in Korea fell below 5%. Despite the rise in the base interest rate, deposit rates at the four major banks turned downward in just over a month. In fact, there will be no further interest rate hikes this year. Although the financial authorities’ request to financial institutions to refrain from excessively raising interest rates on deposits and savings accounts to secure funds seems to have been hit, financial consumers are outraged. If the COFIX, which is the standard for 15-day variable housing mortgage loans, rises even slightly, a situation may occur in which the deposit interest rate decreases and only the loan interest rate rises during interest rate hikes .

According to the bank sector on the 13th , the product that offers the highest interest rate among deposits sold by commercial banks (based on one-year maturity) is SC First Bank’s ‘ e -Green Save Deposit’, which has an annual interest rate of 5.0 %. However, a 5% interest rate is applied only for lump sum payments at maturity, and only 4.9 % for monthly interest payment products . In fact, it’s down to 5%. The interest rate, which was offered up to 5.3 percent last month, was lowered by 0.2 percentage points this month. e-Excluding Green Save deposits, all deposits sold by commercial banks fell below 5%. Hana Bank’s ‘Hana Term Deposit’, which had the highest interest rate of 5% last month, fell by 0.15 percentage point to 4.85 % per annum, while Shinhan Bank’s ‘Smart Time Deposit’ and KB Kookmin Bank’s ‘ KB Star Term Deposit’ were each 4.78% . down to %. The two products had interest rates of 4.95 % and 5.01 % per annum on the 20th of last month. Savings bank deposit rates, which were expected to exceed 6% and reach 7%, are also showing a downward trend. According to the Korea Federation of Savings Banks, on the 23rd of last month, the average interest rate on savings bank deposits (based on one-year maturities) was 5.53 %, but recently fell 0.05 percentage point to 5.48 %. The interest rate for individual deposit products, which sometimes exceeded 6%, recently reached a maximum of 5.9 .

As % 6% products are no longer available. Even in the mutual banking sector, the maximum deposit interest rate exceeds 6%, but it is difficult 스포츠토토 to find products in the mid to late 6% range as before. An official from a commercial bank said, “The biggest thing was that the money market situation was improving little by little from last month.” The industry predicts that

this situation will continue at least until the base rate is raised at the Monetary Policy Committee of the Bank of Korea to be held on January 13 next year. This is because most banks have not raised their deposit rates even after the Bank of Korea raised the base rate by 0.25 percentage points on the 25th of last month. In addition, it is expected that bond yields, which are rapidly stabilizing, will contribute to the decline in deposit rates. In fact , the average interest rate of 1-year bank debentures ( based on AAA rating) fell to the 4.5 % range on the 12th of this month after reaching a peak of over 5.1 % at the beginning of last month. The 5-year bank bond yield also fell from 5.279 % to 4.686 % over the same period. This is because there is no need to raise the deposit rate at a time when the possibility of an increase in the lending rate has disappeared as the interest rate on bank debentures has decreased.

Rather, as the bond market situation appears to be stabilizing, financial institutions seem to be in another dilemma. A high-ranking executive at a financial holding company said, “I was contemplating whether to issue foreign currency bonds just a month ago, but interest rates have stabilized somewhat and the exchange rate has fallen significantly, so the advantages of foreign currency bonds are disappearing.” We are reviewing various ways to raise funds,” he said.

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