S.Korea's bank deposit, lending rates fall to record low

Deposit and lending rates among South Korean banks fell to a record low after the Bank of Korea ( BOK)'s policy rate cuts in August and October last year, central bank data showed Monday.

Average rate on fresh deposits in banks decreased 0.05 percentage points from a month earlier to 2.04 percent in February, the lowest since the central bank began to compile the data in 1996, according to the BOK.

The lowest rate came as the BOK lowered its benchmark interest rate by 25 basis points in August and October in 2014 each to 2 percent.

The BOK cut the rate by 25 basis points to an all-time low of 1. 75 percent in March, boosting expectations for the further fall in deposit and lending rates.

Rates for time deposits declined 0.06 percentage points from a month earlier to 2.02 percent in February, and the figure for periodical deposits slid 0.04 percentage points to 2.31 percent.

Average lending rate of banks fell 0.04 percentage points from a month earlier to a record low of 3.86 percent in February.

Rates of corporate loans changed little at 4.02 percent, but the rate for household loans retreated from 3.59 percent in January to 3.48 percent in February. Endi