Korean banks' loan, deposit rates drop 9bps, 4bps

NIS on newly extended balance also fell.

Korea's depository banks’ weighted average net interest spread (NIS) fell 5bps m-m to 2.39% on outstanding balance in October.

According to a research note from Nomura, loan and deposit rates fell 9bps and 4bps m-m, respectively.

Further, NIS on newly extended loans declined 4bps m-m to 1.82% in October.

Interest rates on loans declined by 14bps m-m while interest rates on deposits declined by 10bps m-m.

The decline in interest rates on loans was led by a 14bps m-m decline in corporate loan interest rates. Household loan interest rates fell by 12bps m-m.