April New COFIX 1.84%... Up 0.12%p from Previous Month

Continued Uptrend During Interest Rate Hike Period

[Asia Economy Reporter Yu Je-hoon] In April, the COFIX (Cost of Funds Index) based on new transaction amounts continued its upward trend, reaching 1.84%.

According to the Korea Federation of Banks on the 15th, the COFIX based on new transaction amounts last month rose by 0.12 percentage points from the previous month to 1.84%. The COFIX based on outstanding balances increased by 0.08 percentage points to 1.58%, and the new outstanding balance-based COFIX rose by 0.05 percentage points to 1.22%.

Commercial banks will apply the COFIX rate level announced on this day for last month to new variable-rate mortgage loans starting from the 16th.

COFIX is the weighted average interest rate of funds raised by eight domestic banks (KB Kookmin, Shinhan, Hana, Woori, NongHyup, Industrial Bank of Korea, SC First Bank, and Citibank Korea), reflecting changes in interest rates of deposit products such as actual deposits, savings, and bank bonds handled by banks, causing it to rise or fall accordingly.

While the outstanding balance-based and new outstanding balance-based COFIX generally reflect market interest rate changes gradually, the COFIX based on new transaction amounts is calculated based on funds newly raised in the current month, so market interest rate changes are reflected relatively quickly.

Meanwhile, the short-term COFIX announced over the past four weeks was surveyed to be between 1.54% and 1.70%. The short-term COFIX is calculated based on short-term funds with a contract maturity of three months.

This content was produced with the assistance of AI translation services.