Five Major Banks See Loan-to-Deposit Rate Spread Widen Again in One Month... 1.512%p

March Loan-to-Deposit Rate Spread Announced by Korea Federation of Banks

Household Lending Rates Rise While Deposit Rates Fall

The household loan-to-deposit interest rate spread at the five major commercial banks (KB Kookmin, Shinhan, Woori, Hana, and NH NongHyup) widened over the past month. This was due to an increase in lending rates, which surpassed the 4.3% level, while deposit rates fell to around 2.7%.

According to data released by the Korea Federation of Banks on the 28th, the household loan-to-deposit interest rate spread (excluding policy-based loans for low-income households) at the five major commercial banks averaged 1.512 percentage points last month. This represents an increase of 0.042 percentage points from the previous month's average of 1.47 percentage points.

The household loan-to-deposit interest rate spread is calculated by subtracting the deposit interest rate from the household lending rate. Among the five major banks, this spread expanded in January for the first time in five months, then slightly decreased in February.

The average household lending rate at the five major banks stood at 4.302% last month, up 0.03 percentage points from 4.272% in February. In contrast, the average deposit interest rate fell to 2.79% last month, down 0.012 percentage points from the previous month's average of 2.802%.

By bank, Shinhan Bank recorded the highest household loan-to-deposit interest rate spread at 1.64 percentage points, reflecting the largest gap between household lending and deposit rates. This was followed by NongHyup Bank at 1.55 percentage points, Woori Bank at 1.50 percentage points, Hana Bank at 1.46 percentage points, and KB Kookmin Bank at 1.41 percentage points.

Yonhap News Agency

Among the three internet-only banks, last month’s household loan-to-deposit interest rate spread (excluding policy-based loans for low-income households) was 3.20 percentage points at Toss Bank, 2.43 percentage points at K Bank, and 1.64 percentage points at KakaoBank.

The household loan-to-deposit interest rate spread at Toss Bank and KakaoBank increased by 0.23 percentage points and 0.14 percentage points, respectively, reaching 3.20 percentage points and 1.64 percentage points. K Bank's spread fell by 0.21 percentage points from the previous month to 2.43 percentage points.

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