1 . Interest Rates □ Treasury bond rates ( 3 - yr ) declined markedly going into August and registered 3 . 45 % on August 10 ( 3 . 85 % at end - July 2011 → 3 . 90 % on August 1 → 3 . 45 % on August 10 → 3 . 49 % at end - Aug → 3 . 35 % on September 6 ) , in reaction to destabilizing external factors including the economic slowdown in the US and the downgrade of its sovereign credit rating , and the spread of sovereign fiscal debt problems in Europe . o They afterwards fluctuated within a narrow range around 3 . 50 %, and entering September fell to an annual low of 3 . 35 % on September 5 , due mainly to the sluggishness of U . S . employment indicators . o Foreign investors remained net buyers of local bonds in August ( + 4 . 6 trillion won in July 2011 → + 3 . 8 trillion won in August ; + 0 . 5 trillion won in outstanding amount ) . □ CD ( 91 - day ) rates , after having remained at 3 . 59 % since July 7 , fell by 1 bp on September 5 ( 3 . 59 % at end - July 2011 → 3 . 58 % on September 6 ) . 2 . Stock Prices □ In August , the KOSPI plunged to its low for the year of 1 , 711 on August 22 , due chiefly to the effects of destabilizing external factors . It rebounded thereafter , boosted for instance by inflows of funds for bargain hunting and by the easing of concerns about the US economy . o Entering September , the index fell to the 1 , 700 s again , due mostly to mounting concerns about the U . S . economic slowdown . o Foreign investors net sold Korean stocks on a large scale in August , but switched to net buying at around the end of the month . 3 . Flow of Funds □ Deposit - taking by banks grew at a slower pace in August than in the previous month ( + 7 . 1 trillion won in July 2011 → + 3 . 9 trillion won in August ) . o This was attributable to the slower growth in time deposits in line chiefly with a lowering of deposit rates , and to the accelerated decline in instant access account deposits due for example to payments of corporate taxes , which together more than offset a decrease in the net volume of bank debentures redeemed and a shift of CDs to net issuance . □ Deposit - taking by asset management companies showed faster growth ( + 0 . 6 trillion won in July 2011 → + 4 . 4 trillion won in August ) . o This owed mainly to a shift of MMF deposits to an increase with an inflow of bank funds , and to increased inflows of fresh funds to stock - type investment trusts . 4 . Corporate Funding and Household Credit □ Bank lending to the corporate sector rose steadily in August , centering around lending to large corporations ( + 5 . 9 trillion won in July 2011 → + 3 . 1 trillion won in August ) . o Lending to large corporations rose sharply ( + 3 . 2 trillion won in Jul 2011 → + 3 . 0 trillion won in August ) , owing mostly to banks ’ eased lending attitudes and to demand for working capital . o Lending to small and medium - sized enterprises ( SMEs ) grew at a much slower pace ( + 2 . 8 trillion won in July 2011 → + 0 . 1 trillion won in August ) , affected chiefly by repayment at the start of August of loans taken out for settlement purposes *, despite both intensified bank efforts to expand lending and to fund demand for payments of corporate taxes . * Since the last day of the month , July 31 , was a Sunday , repayments of loans taken out for payment of bills ― including secured receivables loans ― which are usually concentrated at the month - end , were deferred to the beginning of August . □ Net CP issuance declined sharply ( + 3 . 6 trillion won in July 2011 → + 0 . 4 trillion won during August 1 to 20 ) compared to the previous month , when the reissuing of CPs temporarily redeemed at the half - year end took place . □ The net issuance of corporate bonds ( public offerings ) expanded ( + 1 . 0 trillion won in July 2011 → + 1 . 8 trillion won in August ) , in reflection mainly of the improved terms of issuance following the fall in market rates . □ Fund - raising through the stock market was sluggish ( 0 . 4 trillion won in July 2011 → 0 . 1 trillion won in August ) , influenced by the fall in Korean stock prices . □ Banks ’ household lending growth increased slightly in August ( + 2 . 3 trillion won in July 2011 → + 2 . 5 trillion won in August ) , centering around the “ other loans including overdraft accounts ” category . o Mortgage loans ( including loans assigned to the KHFC ) grew at a slower pace ( + 2 . 6 trillion won in July 2011 → + 1 . 9 trillion won in August ) , owing mostly to banks ’ attempts to rein in lending in accordance with the government policy issued to this effect . o Other loans including overdraft accounts posted a huge increase ( + 0 . 3 trillion won in July 2011 → + 1 . 3 trillion won in August ) , influenced by demand for funds for the purposes of payment of card bills incurred during the summer holiday season and for buying Korean stocks , and by banks ’ attempts to rein in mortgage loans . 5 . Monetary Aggregates □ Year - on - year M 2 growth ( period - average basis , year - on - year ) is estimated to have extended its increase from the previous month to stand in the upper - 3 % range in August ( 3 . 0 % in June 2011 → 3 . 2 % in July → upper - 3 % rangee in August ) . o This was attributable mainly to expanded private sector credit extension including bank loans despite huge outflows of foreign portfolio investment funds . [ Source : The Bank of Korea ] ▶ [ 화보 ] 김하늘 , 수영복 몸매 화제 ` 늘씬 하 네 ~`▶ 기아차 , 신형 프라이드 성능 보 니 " 와우 ! "▶ 최준희 , 12 주 만 에 80 kg 감량 화제 ▶ 써니 , “ 내게 집착 하 던 남자 연예인 있 다 ” ▶ [ 포토 ] 백지영 - 정석원 ` 커플 룩 ` 동반 출국 [ ⓒ Maeil Business Newspaper & mk . co . kr , All rights reserved ]