As major commercial banks tighten total volume controls on household loans, they are maintaining high levels of additional charges.
According to the Korea Federation of Banks on the 17th, the average additional charge on amortizing mortgage loans newly issued by the five major banks (KB Kookmin, Shinhan, Woori, Hana, NH Nonghyup) in June was 3.27%, up 0.04 percentage points from the previous month (3.23%). That is the highest since the related statistics began in July 2019.
Banks set lending rates by adding to the base rate. These additional charges are calculated to reflect operating costs, legal expenses, risk premiums, and upward or downward adjustments.
By bank, NH Nonghyup Bank recorded a record high at 3.93%, followed by Hana Bank (3.50%), Woori Bank (3.36%), KB Kookmin Bank (3.13%), and Shinhan Bank (2.41%).
However, the average loan-deposit rate gap for mortgage loans with the same conditions handled by the five major banks decreased by 0.08 percentage points, from 1.56% in May to 1.48% in June.
An industry official said, "In the process of curbing mortgage loans to manage the total volume of household lending, there was an aspect of keeping the additional charges at a high level," adding, "As deposit rates rose, the loan-deposit rate gap actually narrowed."