The cost of funds index (COFIX), which is the benchmark interest rate for residential mortgage loans from banks, has fallen for nine consecutive months.
The Korean Federation of Banks noted on the 15th that the COFIX based on new handling amounts recorded an annual rate of 2.54% in June, down 0.09 percentage points from the previous month. The COFIX has been declining for nine consecutive months since October of last year. Last month's balance-based COFIX decreased by 0.07 percentage points to an annual rate of 3.07%.
The COFIX reflects the weighted average interest of funds raised by eight domestic banks and reflects the interest rate fluctuations of deposit products that banks actually handle, such as savings and checking accounts and bank bonds. A decrease in COFIX means that banks secured funds by offering lower interest.