Interest Rate Reduction Request Disclosure to Change... Average Interest Rate Reduction Range Also to Be Publicized

Non-face-to-face Application Rate Also Disclosed

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[Asia Economy Reporter Bu Aeri] As early as next month, banks will disclose how much they have lowered interest rates after accepting customers' requests for loan rate reductions.

On the 19th, the Financial Supervisory Service announced that it has prepared and plans to revise the detailed rules for bank supervision operations reflecting this content.

An official from the Financial Supervisory Service stated, "To enhance the effectiveness of the system, we will improve the disclosure of acceptance rates, which previously focused only on simple application cases, and expand the scope of acceptance rate disclosures for further improvements."

The right to request a rate reduction is the right of borrowers whose credit status has improved since taking out a loan to ask financial institutions to lower their loan interest rates.

Although the right to request a rate reduction was previously disclosed, only the number of applications, number of acceptances, amount of interest reduction, and acceptance rate were made public.

The Financial Supervisory Service plans to additionally disclose the rate of non-face-to-face applications.

Furthermore, the average amount of interest rate reduction accepted will be disclosed to supplement the disclosure, which was mainly based on the number of cases.

The disclosure scope will also be expanded by categorizing acceptance rates by households and corporations, and by credit, collateral, and mortgage loans to provide more detailed information.

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