S. Korean lending rates hit 7-year high in September

SEOUL, Oct. 30 (Yonhap) -- South Korean banks' lending rates reached a seven-year
high in September mainly due to a rise in market interest rates, the Bank of
Korea (BOK) said Thursday.
According to the BOK, the average lending rate for households and companies
reached 7.44 percent last month, up 0.13 percentage point from a month earlier.
The September figure was the highest since August 2001 when the lending rate
reached 7.51 percent.
Yields on certificates of deposit (CDs), which serve as benchmark for market
rates, gained 0.05 percentage point last month to 6.15 percent on average, it
said.
The average interest rate for household loans hit a nearly seven-year high of
7.45 percent on the back of higher home-backed lending. The interest rate for
home-backed lending reached 7.25 percent last month, marking the highest since
September 2001 when the BOK began to compile related data.
The average rate for corporate lending gained 0.14 percentage point on-month to
hit an over seven-year high of 7.44 percent last month, the BOK said.
Meanwhile, the average interest rate on deposits rose by 0.14 percentage point to
6.05 percent last month, the BOK added.
sam@yna.co.kr
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