As loan interest rates are expected to continue rising for the time being, the burden on borrowers who have large amounts of bank debt due to’young drag’ (to attract the soul) and’debt investment’ (invest through loans) is expected to increase.
According to the financial sector on the 28th, as of the 25th, KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup’s five major commercial banks’ credit balance was KRW 135. It turned out to be reduced.
The four major commercial banks of KB Kookmin, Shinhan, Hana, and Woori have their credit loan interest rates (1st grade, 1 year) at 2.59-3.65% per year. This is a 0.6% point increase in the minimum interest rate compared to 1.99 to 3.51% at the end of July last year when the ‘1% level’ credit loan interest rate appeared.
In addition to the interest rate on credit loans, the interest rate on mortgage loans is on the rise. As of the 25th of the last four major banks, the interest rate for mortgage loans (linked to Cofix) is 2.34~3.95% per year. Also, the lowest interest rate rose by 0.09 percentage points from the end of July last year (2.25 to 3.95%).
It is analyzed that the interest rate on credit loans was influenced by the increase in the interest rate of financial bonds. The interest rate on short-term financial bonds, such as bank bonds 6 months and 1-year bonds, is used as an indicator (standard). In recent years, long-term interest rates such as 10-year KTBs have risen enough to exceed pre-Corona 19 levels, reflecting economic improvement and inflation expectations.
In fact, the interest rate on 1-year bank bonds (AAA, non-guaranteed), which is the most commonly used index rate for credit loans, rose 0.095 percentage points in half a year from 0.761% at the end of July last year to 0.856% as of the 26th. In addition, after October last year, as the financial authorities started to’strengthen credit loans’ in earnest, banks have significantly lowered the preferential interest rate.
In the case of variable interest rates on mortgage loans, COFIX (finance cost index) is mainly followed. In simple terms, COPIX is an indicator of how much cost (interest rate) was spent raising funds for loans by eight domestic banks. Changes in interest rates of received products such as deposits and savings accounts and bank bonds actually handled by the bank are reflected.
Kim Ju Ogija [email protected]