Average benchmark loan rates at 14 domestic banks fell 0.72 percentage points from August 2023 to last month, but actual household loan rates declined only 0.15 points. The banks’ average actual spread rate—the lending margin after preferential adjustments—rose 0.57 points, offsetting about 80% of the benchmark decline. Over the past year, benchmark rates and spreads both increased, lifting actual loan rates by 0.53 points. The five major banks recorded an even sharper 0.61-point annual increase in actual rates. Rep. Park Dae-chul of the People Power Party said tighter total loan volume regulations should not lead banks to shift the burden to borrowers by raising spreads, while banks say spreads also reflect credit risk, operating expenses and capital costs.