The Cost of Funds Index (COFIX), the benchmark for variable rates on mortgage loan in the banking sector, rose for the first time in a month. The COFIX based on new handling amount increased by 0.08 percentage point from the previous month.
The Korea Federation of Banks said on the 15th that the COFIX based on new handling amount for April this year was tallied at an annualized 2.89%, 0.08 percentage point higher than March (annualized 2.81%). The COFIX based on outstanding balance also rose by 0.02 percentage point, from an annualized 2.85% to 2.87%.
COFIX is the weighted average interest rate of funds raised by eight domestic banks. When COFIX rises, it means banks secure money by paying more interest.
The "new outstanding balance-based COFIX," introduced in June 2019, rose from an annualized 2.45% to 2.49%. The new outstanding balance COFIX also includes rates on other deposits, borrowing fund, and settlement funds.