October Loan-Deposit Interest Rate Spread: NH Nonghyup Tops 5 Major Banks for Three Consecutive Months

[Asia Economy Reporter Song Hwajeong] Among the five major commercial banks last month, NH Nonghyup Bank had the largest household loan-deposit interest rate spread. Excluding NH Nonghyup Bank, the loan-deposit interest rate spreads of the other four banks narrowed to the 0% point (p) range for the first time since the disclosure.

According to the loan-deposit interest rate spread comparison disclosure on the Consumer Portal of the Korea Federation of Banks on the 21st, NH Nonghyup Bank's household loan-deposit interest rate spread (household loan interest rate - savings deposit interest rate), excluding policy low-income finance (Sunshine Loan Bank, Sunshine Loan 15, Safety Net Loan) in October, was 1.56%p. Although the spread narrowed from 1.85%p in the previous month, it recorded the largest spread among the five major banks for three consecutive months. Hana Bank (0.94%p), Shinhan Bank (0.89%p), Woori Bank (0.77%p), and KB Kookmin Bank (0.67%p) followed. The loan-deposit interest rate spreads of the four banks all shrank to the 0%p range. The average loan-deposit interest rate spread of the four banks was 0.82%p.

Among the 19 banks participating in the disclosure, including regional banks and foreign banks, the largest household loan-deposit interest rate spread was at Toss Bank and Jeonbuk Bank (5.37%p). In the case of Jeonbuk Bank and Toss Bank, the proportion of loans to low- and medium-credit borrowers is relatively higher than other banks, which is analyzed to have caused higher household loan interest rates.

Among the three internet banks, Toss Bank had the highest spread, with K Bank recording 1.57%p and Kakao Bank 1.11%p.

Including corporate loans, Jeonbuk Bank had the largest loan-deposit interest rate spread among all banks at 4.71%p. Among the five major banks, NH Nonghyup Bank had the largest spread at 1.54%p. It was followed by KB Kookmin Bank (1.21%p), Woori Bank (1.03%p), Shinhan Bank (1.11%p), and Hana Bank (1.11%p).

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