NH NongHyup Bank takes out the largest loan-to-deposit margin despite preferenti

NH Nonghyup Bank's loan-to-deposit interest rate gap was found to be the highest among the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup).

Although Nonghyup Bank has the peculiarity of handling government policy funds, civic groups pointed out that such an explanation is not sufficient considering the preferential treatment that Nonghyup Bank receives compared to commercial banks.

According to a survey of the loan-to-deposit interest rate difference among the five major banks disclosed to the Korea Federation of Banks by the Citizens' Conference on Consumer Sovereignty on the 31st, Nonghyup Bank had the highest loan-to-deposit interest rate difference of 1.44 percent in March this year.

Nonghyup Bank also had the highest difference in the loan-to-deposit interest rate of household loans, excluding corporate loans, at 1.03%.

Nonghyup Bank also had the highest interest rate difference of 1.02% considering only general household loans, except for policy common people's finance such as Bogeumjari, which is nearly twice the average of the five major banks.

Nonghyup Bank's loan-to-deposit interest rate difference was the largest among all major household loan products such as mortgage loans, lease on a deposit basis loans, and credit loans.

Nonghyup Bank cited the special nature of handling government policy funds because of the large difference in loan-to-deposit interest rates compared to other banks.

Government policy funds are mainly deposited as short-term time deposits for 1 to 3 months, so the savings-type reception rate is low, and accordingly, the gap in deposit and deposit rates is relatively large.

Consumer sovereignty pointed out, "It is not clear how much government policy funds account for Nonghyup Bank's receipt, so it is not known how much policy funds affect Nonghyup Bank's savings-type reception rate."

Consumer sovereignty argued that even if Nonghyup Bank accepts the explanation, low interest rates on government policy funds are also a problem.

Based on the amount of new handling in March this year, Nonghyup Bank's deposit interest rate was 3.43% for one year and 3.12% for less than one year. In the case of other commercial banks, the gap in deposit interest rates due to maturity is not large, but in the case of Nonghyup Bank, there was a difference of more than 0.3 percentage points.

Consumer sovereignty said, "The government's policy financing is based on taxes paid by the general public," adding, "Applying a particularly low interest rate on the funds not only dilutes the value of funds used to support rural and farm households, but also goes against tax justice."

Consumer sovereignty insisted that Nonghyup Bank raise the interest rate on deposits for less than a year and clarify the amount of policy funds received.

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NH NongHyup Bank takes out the largest loan-to-deposit margin despite preferential treatment from the government