The interest rate of commercial banks in Korea is expected to continue an upward trend as the U.S. benchmark interest rate is likely to be raised gradually until 2019.
According to industry sources on March 19, the banking industry is expected to benefit from the hike in U.S. interest rate. The banks' lending rate is picking up, while the deposit rate remains stagnant, leading to the increase in the spread between lending and deposit interest rates.
The banking industry's lending/deposit rate spread stood at 2.00 percentage point in January 2017, up 0.12 percentage point from a month ago. The improvement in the business environment is leading to a surge in stock prices of major banks.
Major financial groups such as Shinhan, KB and Hana enjoyed a sharp increase in net profits last year. Shinhan and KB Financial Group joined the 2 trillion won net profit club last year, while Hana Financial Group achieved record-high profits since the global financial crisis.
South Korean asset managers are joining hands with French property investment firms to buy prime commercial buildings in the Netherlands and Belgium as they are turning eyes to the Benelux region for higher returns, sending their real estate values to&hellip
Blackstone, Kuwait Investment Authority (KIA) and three property investment firms are vying for Sony Center in Berlin which South Korea’s National Pension Service (NPS) has put on the block in a transaction expected to fetch around €1.1 billion ($1.3 billion),&hellip
The Carlyle Group will consolidate its South Korean operations divided into buyout and growth capital units by combining them, after the three-men growth capital unit focusing on minority stake deals was believed to have lost one or two managers recently.&hellip