Bank of Korea to Conduct RP Purchases from 5 Non-Bank Institutions on the 24th

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] The Bank of Korea announced on the 23rd that "in order to expand liquidity supply to securities firms, it has decided to conduct RP purchases targeting five non-bank institutions, including Korea Securities Finance Corporation, that are subject to repurchase agreements (RP)."

First, RP purchases of due-date securities (14-day or 28-day) are scheduled to be conducted on the 24th.

Additionally, to expand liquidity supply channels, the current five non-bank institutions subject to RP will be expanded to include securities firms selected as monetary stabilization bond target securities firms and government bond primary dealers (PDs), and the securities subject to RP will also be expanded.

The current scope, which includes government bonds, government-guaranteed bonds, Korea Housing Finance Corporation mortgage-backed securities (MBS), and bank bonds, will be expanded to include some special bonds issued by public enterprises.

The Bank of Korea's loan collateral securities will also be expanded to include bank bonds and some special bonds issued by public enterprises.

A senior official from the Bank of Korea stated, "The expansion of RP target institutions, RP target securities, and loan collateral securities will be discussed and decided at the Monetary Policy Committee meeting soon."

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