5 Major Banks Reduce Loan-Deposit Interest Rate Spread... 0.836%P

As of September, the interest rate spread between deposits and loans (the difference between deposit and loan interest rates) at the five major banks has narrowed. This is attributed to banks raising deposit interest rates amid competition to secure deposits.

According to the Bankers Association's disclosure on the 27th, the average household interest rate spread for new transactions (excluding policy-based low-income finance) at the five major banks?KB Kookmin, Shinhan, Hana, Woori, and NongHyup?was recorded at 0.836 percentage points in September, down 0.1 percentage points from the previous month.

The interest rate spread refers to the difference between loan interest rates and deposit interest rates and is an indicator related to a bank's profitability.

Among the five major banks, NH NongHyup Bank had the largest interest rate spread at 1.05 percentage points, followed by KB Kookmin Bank (0.83 percentage points), Woori Bank (0.82 percentage points), Shinhan Bank (0.77 percentage points), and Hana Bank (0.71 percentage points).

Among 19 banks, Jeonbuk Bank had the largest interest rate spread at 5.63 percentage points, while IBK Industrial Bank had the smallest at 0.61 percentage points.

The interest rate spreads for internet-only banks were in the order of Toss Bank (3.41 percentage points), K Bank (1.72 percentage points), and Kakao Bank (1.31 percentage points).

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