Top 5 Banks Narrow Loan-Deposit Interest Rate Gap... NongHyup Bank Ranks 1st

Published 20 Jun.2023 16:01(KST)

Last month, among the five major banks, NH Nonghyup Bank had the largest household loan-deposit interest rate spread (household loan interest rate minus savings deposit interest rate), excluding policy-based low-income financial products.

According to the disclosure by the Korea Federation of Banks on the 20th, the average household loan-deposit interest rate spread (excluding policy-based low-income financial products) of the five major banks?KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup?was recorded at 1.028 percentage points last month. This is a decrease of 0.122 percentage points from the previous month (1.15%).

Among the five major banks, NH Nonghyup Bank had the largest household loan-deposit interest rate spread at 1.36 percentage points. It was followed by Hana Bank (1.06 percentage points), Shinhan and Woori Banks (0.94 percentage points), and Kookmin Bank (0.84 percentage points).

Including corporate loans, the loan-deposit interest rate spread was 1.71 percentage points for NH Nonghyup Bank, 1.56 percentage points for Hana Bank, 1.43 percentage points for Shinhan and Woori Banks, and 1.38 percentage points for Kookmin Bank.

Among internet-only banks, Toss Bank had the largest household loan-deposit interest rate spread excluding policy-based low-income financial products at 3.64 percentage points. It was followed by K Bank (1.85 percentage points) and Kakao Bank (1.16 percentage points).

Including regional banks and foreign banks, among the 19 banks subject to disclosure, Jeonbuk Bank had the largest household loan-deposit interest rate spread at 6.11 percentage points. IBK Industrial Bank had the smallest at 0.79 percentage points.

Meanwhile, although Citibank Korea is subject to loan-deposit interest rate spread disclosure, it has suspended new transactions with individual customers since February 15 of last year due to the decision to discontinue consumer finance operations.