Bank lending rates in South Korea again fell to the lowest level in May from the previous month as interest rates continued to stay low in Asia’s fourth-largest economy, central bank data showed Thursday.

The average rate of new loans to households and firms stood at 4.40 percent last month, down 0.02 percentage point from the previous month, according to the Bank of Korea. The May figure marks the lowest level since the central bank began compiling related data in 1996.

The BOK explained that an increase in lending to stable companies and efforts to promote hybrid mortgage-backed loans drove down the average rate.

The average rate of corporate loans reached 4.5 percent last month, inching down 0.01 percentage point from the previous month. The corresponding rate for household lending slipped 0.02 percentage point to 4.02 percent.

The average deposit rate also dipped 0.01 percentage point to 2.59 percent, according to the data. (Yonhap)