Business Journal
Abstract:
Due to extensive fiscal policy and quantitative easing during Covid-19 Crisis, the inflation rate of the United States soared significantly. In order to alleviate the situation, the Federal Reserve decided to increase interest rates continuously from 2022 to 2023. Higher interest rates affected flexible-rate loans to become more expensive for debtors, and the banks sought more profit by increasing their net interest margins. By studying the South Korean case, the paper offers a way for banks to show social responsibility to the community, which was something unprecedented. The government and the public, as well as the press, can work so that banks would show social responsibility by at least fixing their net interest margins, or cutting interest payments temporarily at most.