“Loan regulations that make banks hungry” interest rates, raising loans and lowering deposits… Is the interest rate difference this much?

Market interest rates have fallen in recent months due to expectations of domestic and international base interest rate cuts, but the deposit-loan interest rate gap (deposit-loan interest rate), which is the basis for banks’ profits, has actually increased for two consecutive months.

According to the ‘Comparison of Deposit and Loan Interest Rate Differences’ statistics published on the Korea Federation of Banks’ consumer portal on the 3rd, policy microcredit (Sunshine Loan Bank, Sunshine Loan 15) actually handled by the five major banks (KB, Shinhan, Hana, Woori, and NH Nonghyup) in September The difference in interest rates between deposits and loans for household loans (excluding safety net loans, etc.) was calculated to be 0.43 to 1.05 percentage points.

The deposit-to-deposit interest rate differential is the difference between the loan interest rate that a bank receives when lending money and the interest rate it pays to depositors. The fact that the deposit-to-deposit interest rate difference is relatively large means that, mathematically, there is a lot of profit for banks due to the difference in loan and deposit interest rates.

By bank, NH Nonghyup Bank ranked first in deposit-to-deposit interest rate difference (1.05%p), followed by KB Kookmin (0.98%p), Hana (0.68%p), Shinhan (0.53%p), and Woori (0.43%p).

Among all 19 banks, Jeonbuk Bank had the largest deposit/loan interest rate difference in September at 5.00%p. Gwangju Bank (2.60%p), Citibank Korea (2.25%p), Toss Bank (1.81%p), and Kakao Bank (1.72%p) were also in the top 5 by around 2%p.

Looking at the trend of deposit/loan interest rate difference compared to the previous month, among the five major banks, all except NH Nonghyup increased for two consecutive months in August and September. In general, the trend is a rebound after hitting the low point in July.

In the case of KB Kookmin Bank, it jumped from 0.44%p in July to 0.71%p in August and again to 0.98%p in September. At Shinhan Bank, the deposit/loan interest rate gap, which was 0.20%p in July, more than doubled to 0.53%p in September.

This is an abnormal trend considering that during periods of falling interest rates, loan interest rates usually fall faster than deposit interest rates, reducing deposit margins.

However, NH Nonghyup Bank’s deposit-loan interest rate difference in September (1.05%p) exceeded that of the other four banks, but decreased slightly compared to August (1.09%p).

The level of interest rate differentials between deposits and loans in the banking sector itself has gone back as long as a year. KB Kookmin Bank’s September deposit-loan interest rate difference (0.98%p) was the largest in 1 year and 5 months since April 2023 (1.13%p).

Shinhan Bank (0.53%p) was 4 months after May (0.64%p), Hana Bank (0.68%p) was 7 months after February (0.71%p), and Woori Bank (0.43%p) was 7 months after June (0.50%p). %p) It was the highest in three months.

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