The Bank of Korea to Hold Online Briefing on December 12 Regarding Development of Risk-Free Reference Interest Rate

[Asia Economy Reporter Kim Eunbyeol] The Bank of Korea announced on the 9th that it will hold an online public briefing session on the development of the domestic risk-free reference rate (RFR) on the 12th, together with the Korea Federation of Banks and the Korea Financial Investment Association.

The risk-free reference rate reflects the time value of money and refers to the theoretical interest rate expected from a risk-free investment.

This briefing session, which can be viewed on the Bank of Korea's YouTube channel, will first introduce the progress and future plans for the development of the risk-free reference rate by the Bank of Korea. The Korea Securities Depository, Korea Institute of Finance, and Korea Development Bank will explain key issues such as the significance and implications of selecting the risk-free reference rate.

In June last year, the Bank of Korea launched a Reference Rate Improvement Task Force together with the Financial Services Commission. In preparation for emergencies such as the suspension of important reference rate calculations or the need to establish replacement rates following the enforcement of the Act on the Management of Financial Transaction Indicators on November 27, the Bank of Korea has been developing the risk-free reference rate.

The Bank of Korea has finalized candidate rates including bank and securities finance borrowing call rates, government bond and Monetary Stabilization Bonds repurchase agreement (RP) rates. The final risk-free reference rate will be selected within this year after collecting opinions through the public briefing session. The rate calculation institution will be announced in the first half of next year.

This content was produced with the assistance of AI translation services.