S.Korean banks' corporate lending rate hits record low on policy rate cut

Source: Xinhua| 2019-11-28 12:19:59|Editor: zh
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SEOUL, Nov. 28 (Xinhua) -- South Korean banks' corporate lending rate hit a record low last month after policy rate cut, central bank data showed Thursday.

Rate for fresh loans extended by banks to companies was an annualized rate of 3.28 percent in October, down 0.14 percentage points from the previous month, according to the Bank of Korea (BOK).

It was the lowest since relevant data began to be compiled in 1996. Lending rate for loans to big corporations slid 0.17 percentage points to 3.13 percent, while the rate to small firms dipped 0.11 percentage points to 3.39 percent.

The record-low lending rate came as the BOK cut its benchmark interest rate by 25 basis points to a record low of 1.25 percent in October, after lowering it from 1.75 percent to 1.50 percent in July.

Meanwhile, banks' lending rate to households inched down 0.01 percentage point over the month to an annualized rate of 3.01 percent in October.

Rate for mortgage loans, which account for most of the bank lending to households, fell 0.01 percentage point to 2.50 percent in the month.