SEOUL, Jan. 27 (Xinhua) -- South Korean banks' lending rate fell last month owing to the financial authorities' efforts to lower debt-servicing burden amid rapid policy rate hikes, central bank data showed on Friday.
The weighted average rate for new bank loans was an annualized 5.56 percent in December 2022, down 0.08 percentage points from a month earlier, according to the Bank of Korea (BOK).
It marked the first slide in nine months as the financial authorities strictly monitored the lending practices of banks, which had competitively raised lending rates amid higher policy rates.
The BOK has tightened its monetary policy stance since August 2021, lifting its key rate from a record low of 0.50 percent to 3.50 percent.
Rate for banks' new corporate loans retreated 0.11 percentage points over the month to an annualized 5.56 percent in December last year.
The lending rate for big companies slipped 0.09 percentage points to 5.32 percent, and the rate for small firms fell 0.17 percentage points to 5.76 percent.
Rate for new bank loans to households gained 0.03 percentage points from a month earlier to an annualized 5.60 percent last month.
The mortgage loan rate declined 0.11 percentage points to 4.63 percent, but credit loan rate spiked 0.12 percentage points to 7.97 percent. ■