Prospects for Bank to Cut Additional Interest Rates...Shinhan Bank up to 0.3%p↓

To curb demand for household loans, commercial banks' policy of raising additional interest rates, which has been going on since the third quarter of last year, is expected to change as early as this week.

Shinhan is expected to lower the rate on household loan products by up to 0.3 percentage points this week, while other commercial banks said they would consider lowering the rate.

The additional interest rate is an interest rate that banks arbitrarily add by reflecting business costs, costs, and risk premiums, excluding market and procurement interest rates.

Earlier in the second half of last year, financial authorities demanded commercial banks take measures to curb demand as household loans surged due to a cut in the benchmark interest rate and increased demand for real estate.

However, household loan growth has eased in the new year, with bank household loans showing the first signs of decline in eight months.

In particular, considering the recent economic slowdown, the overall bank lending rate is expected to be lowered as the Bank of Korea is expected to lower its key interest rate soon.