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Notification for HSBC Direct Overdraft Terms & Conditions Amendment
[2008.01.17]
[HSBC Direct Overdraft Terms & Conditions] will be amended according to below table.
| Article |
Before Modification |
After Modification |
Article 3
Variation in Interest Rates |
The Bank’s internal base rate shall be determined at each interest rate change period. Should the change period not exceed 3 months, the rate will be calculated based on the 91-day CD yield, 91-day monetary stabilitation bond yield notified by KSDA and the Bank’s actual or expected acquisition cost etc. Due to the volatility of the acquisition cost, when the market rate drops, the Bank’s internal base rate could increase, remain unchanged or decrease less than the drop in the market rate. And the internal rate could increase higher than the rise in the market interest rate. |
The Bank’s internal base rate shall be determined at each interest rate change period. If the change period is daily, the rate will be calculated based on the actual inter-bank call transaction yield of the previous business day. Should the change period exceed 1 month, the rate will be calculated based on the monetary stabilization bond yield notified by private bond rating agencies (KSDA, NICE Pricing Services, KIS) and the Bank’s expected acquisition cost. Due to the volatility of the acquisition cost, when the market rate drops, the Bank’s internal base rate could increase, remain unchanged or decrease less than the drop in the market rate. And the internal rate could increase higher than the rise in the market interest rate |
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