Savings banks are cutting deposit rates despite higher market rates because government loan regulations have limited their ability to deploy funds. The Korea Federation of Savings Banks said the average annual rate on 12-month fixed deposits was 3.73% as of September 15, down 0.16 percentage points from 3.89% on July 1. Products offering rates of at least 4% fell from 137 to 13. A savings bank source said deposits increased as the stock market adjusted over the past two months, but lending did not grow significantly, raising the cost of unused funds. Commercial banks have moved in the opposite direction, with major fixed-deposit rates rising alongside market rates. Shinhan Bank raised its SOL Easy Fixed Deposit rate by a total of 0.5 percentage points in July and September to 3.4% annually. As of September 16, maximum rates were 3.4% at KB Kookmin Bank and Woori Bank, 3.3% at Hana Bank and 3.45% at NH Nonghyup Bank. Savings banks remain more dependent on deposits than commercial banks, which can also raise funds through instruments such as bank bonds, so their deposit rates can diverge from changes in the base rate.