Cofix (Cost of Funds Index), the benchmark for variable rates on bank mortgage loans, inched up last month.
According to the Korea Federation of Banks on the 18th, Cofix based on new handling amount was 2.52% in September, up 0.03 percentage points from the previous month (2.49%). After a decline since Oct. last year, it turned upward for the first time in 12 months.
By contrast, Cofix based on outstanding balance fell by 0.05 percentage points, from 2.94% to 2.89%. Cofix based on new outstanding balance also fell by 0.05 percentage points to 2.49%.
Cofix is the weighted average interest rate on funds raised by eight domestic banks; when Cofix falls, banks can secure funds while paying that much less interest. When Cofix rises, the opposite is true.
Specifically, Cofix based on new handling amount and Cofix based on outstanding balance are calculated based on the rates of deposit products such as time deposits, installment savings, mutual installment savings, dwellings savings, negotiable certificates of deposit, repurchase agreements, promissory notes sales, and financial debentures (excluding subordinated bonds and convertible bonds). The new outstanding balance Cofix, introduced in Jun. 2019, also includes the rates on other deposits, borrowing fund, and settlement funds.