Since the start of this month, regional banks have been rolling out deposits products with annual interest rates in the 3% range. This is seen as an attempt to absorb idle funds after commercial banks refrained from raising deposit rates due to government lending curbs.
As of the 30th, according to the financial sector, regional banks such as BNK Busan and Gyeongnam Bank, Jeonbuk Bank, and Jeju Bank are offering deposits products with a 1-year maturity and top rates above 3%. Among them, three banks excluding Jeonbuk Bank raised their rates into the 3% range this month.
A regional bank official said, "As funds are moving from commercial banks into the stock market, regional banks are raising rates to attract a portion of those funds." The outstanding balance of time deposits at the five major commercial banks — KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup — was about 946조8897억원 at the end of February, down 2조4132억원 from the end of January. During the same period, the balance of demand deposits, which are investment standby funds, fell by 8조5993억원.
Commercial banks do not have deposits products in the 3% range. Shinhan Bank had a 1-year product with a top rate of 3% at the end of last year, but it has since lowered it to 2.95%. A commercial bank official said, "Until the end of last year, there was rate competition even among commercial banks, but now, due to government regulations, new lending is difficult, and with a slump in real estate transactions, loan demand is low, so there is no need to raise rates."
The five major banks' household loans outstanding loan balance stood at 765조3148억원 on the 26th, down 2조3633억원 so far this year.