July Loan-Deposit Interest Rate Spread of 5 Major Banks: Hana < Shinhan < KB < Woori < NH

The Lowest Rate Among Commercial Banks is BNK Busan Bank... Only 1.08%
Toss Bank Has the Highest... "Due to Many Loans to Low and Medium Credit Borrowers"

[Asia Economy Reporter Minwoo Lee] A comparative disclosure of the loan-to-deposit interest rate spread (the gap between loan interest rates and savings deposit interest rates) has begun to accurately inform consumers about interest rate-related information. Among commercial banks, BNK Busan Bank had the smallest loan-to-deposit interest rate spread as of last month, while Toss Bank had the largest.

According to the Bankers Association Consumer Portal on the 22nd, BNK Busan Bank's loan-to-deposit interest rate spread was 1.08% as of last month. Excluding KDB Industrial Bank, a policy bank with a somewhat different nature, which recorded 0.53%, this was the lowest level among major commercial banks.

Following were Hana Bank and SC First Bank (both 1.10%), SH Suhyup Bank (1.12%), Shinhan Bank (1.14%), KB Kookmin Bank (1.18%), IBK Industrial Bank (1.28%), Woori Bank (1.29%), and NH Nonghyup Bank (1.36%).

The highest was Toss Bank, at 5.65%, significantly ahead of other internet banks such as Kakao Bank (2.33%) and K Bank (2.45%). This is attributed to a relatively high proportion of mid-interest loans. In fact, Toss Bank's mid-interest loans have already exceeded 38%, while Kakao Bank and K Bank have yet to reach their annual target of 25%.

Meanwhile, the 'household loan-to-deposit interest rate spread,' which is the difference between household loan interest rates and savings deposit interest rates, was also lowest at BNK Busan Bank (0.82%). This was followed by SH Suhyup Bank (0.85%), IBK Industrial Bank (0.86%), Citibank Korea (0.92%), BNK Gyeongnam Bank (0.93%), and Hana Bank (1.04%). Among internet banks, the order from largest to smallest was Toss Bank (5.60%), Kakao Bank (2.33%), and K Bank (2.46%). The highest among all commercial banks was Jeonbuk Bank (6.33%).

Narrowing the scope to the five major commercial banks, Hana Bank had the lowest spread, while Shinhan Bank had the highest at 1.62%. KB Kookmin Bank recorded 1.38%, and NH Nonghyup Bank and Woori Bank each recorded 1.40%.

The Bankers Association explained, "If the proportion of loans to low- and medium-credit borrowers is high or if the proportion of policy products for low-credit borrowers, such as Sunshine Loans, is high, the loan-to-deposit interest rate spread may widen."

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