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Commercial banks cut deposit rates as early as this week

2019-10-27T03:06:31.442Z

Fixed-rate mortgages of commercial banks (mixed, usually shifted to fixed rates after a fixed five-year rate) are rising this week when mortgage rates fall as early as rates rise. According to the financial sector on the 27th, banks are reviewing deposits and deposits after the Bank of Korea rate cut on the 16th of last month.



Fixed-rate mortgages of commercial banks (mixed, usually shifted to five-year fixed rates) mortgage loans (loans) are on the rise and the deposit rate cuts begin this week.

According to the financial sector on the 27th, banks are reviewing deposits and deposits after the Bank of Korea rate cut on the 16th of last month.

As the benchmark rate has fallen by 0.25 percentage points, it is generally assumed that the rate will fall by that amount, but banks are weighing on the breadth and timing of their application.

NH Bank said, “We will adjust the deposit rate to the level of the base rate cut by the end of this month.” KB Kookmin Bank is expected to adjust this week as soon as possible.

Woori Bank said, "We are closely examining the trade-offs between profitability and sales force."

Shinhan Bank said, "We are still under review, but there is no fixed schedule."

For banks, lowering the interest rate right now can reduce profits (interests), which can help profitability, but beware of leading the rate cuts as you can lose customers to other banks.

As a customer in charge of the bank, it is not welcome to reduce interest.

In particular, banks must actively secure deposits ahead of the new lending ratio (rending to loan ratio), which will be implemented from next year.

The fact that banks are not willing to lower their deposit rates also means that market interest rates are not determined.

A bank official said, "The market interest rate is rising even though the interest rate is lowered."

Source: sbskr

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