COFIX, the Cost of Funds Index and a benchmark for banks’ floating-rate mortgage loans, rose for a third straight month.
The Korea Federation of Banks said on Dec. 15 the November COFIX based on new loans was 2.81 percent, up 0.24 percentage point from October’s 2.57 percent.
By contrast, the balance-based COFIX fell 0.01 point to 2.83 percent from 2.84 percent.
COFIX is the weighted average interest rate of funds raised by eight South Korean banks. It reflects rate changes in deposit products such as savings accounts and bank bonds that banks actually handle.
Banks plan to apply the COFIX rate to floating rates on new mortgage loans as early as Dec. 16.
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Ji-young Lee
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