S. Korean banks' lending rate falls for 6th month in May

South Korean banks' lending rate fell for the sixth successive month due to lower policy rate, central bank data showed Monday.

The weighted average rate for new bank loans slipped 0.02 percentage points from a month earlier to an annualized 4.17 percent in May, continuing to decrease since December last year, according to the Bank of Korea (BOK).

The BOK cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year.

The rate for fresh bank loans to households slumped 0.10 percentage points to 4.26 percent in May compared with the previous month.

Mortgage loan rate for households dipped 0.11 percentage points to 3.87 percent, and credit loan rate shrank 0.07 percentage points to 5.21 percent.

The rate for banks' new corporate loans added 0.02 percentage points over the month to 4.16 percent in May.

The lending rate for big companies advanced 0.11 percentage points to 4.15 percent, while the rate for small firms reduced 0.07 percentage points to 4.17 percent.

The weighted average rate for new bank deposits was down 0.08 percentage points over the month to an annualized 2.63 percent in May.