Banks’ lending rates rise for second month in December

By Korea Herald
  • Published : Jan 28, 2014 - 19:40
  • Updated : Jan 28, 2014 - 19:40
South Korean banks’ lending rates rose for the second straight month in December as demand for funds by larger firms increased, the central bank said Tuesday.

The average rates for new loans to households and firms stood at 4.52 percent in December, up 0.02 of a percentage point from the previous month, according to the Bank of Korea.

The central bank froze the key interest rate at 2.5 percent for the eighth straight month in January after making its first rate cut in seven months in May.

The average rates for fresh household lending was 4.1 percent last month, down 0.09 of a percentage point from the previous month, it said.

The corresponding rates for corporate loans reached 4.67 percent, up 0.09 of a percentage point from November.

The average rate for bank deposits rebounded in December from an all-time low as local banks made efforts to lure deposits ahead of year-end.

The deposit rates came in at 2.67 percent last month, up 0.05 of a percentage point in November, it said. (Yonhap)