BOK Selects 36 Institutions for Open Market Operations

[Image source=Yonhap News]

The Bank of Korea announced on the 28th that it has selected 36 institutions eligible to participate in open market operations for one year starting next month.

Open market operations are a policy tool used by the central bank to influence liquidity and interest rates by buying and selling securities with financial institutions.

The institutions selected this time include 20 banks such as Kookmin, Shinhan, Woori, Hana, Industrial, and Nonghyup Banks, and 16 non-bank institutions such as Mirae Asset, Samsung, Meritz, Kiwoom, Hana, and Korea Investment & Securities.

By category, there are 21 institutions eligible for competitive bidding and subscription of Monetary Stabilization Bonds and simple securities trading, 25 institutions eligible for repurchase agreement securities trading, and 9 institutions eligible for securities lending. Banks selected as repurchase agreement securities trading institutions automatically become eligible for the Monetary Stabilization Account.

The Bank of Korea explained, "Selection was made comprehensively considering performance such as winning bids for Monetary Stabilization Bonds and repurchase agreement securities trading, as well as policy responsiveness," and added, "Through transactions with these eligible institutions, we plan to continue promoting efficient and smooth liquidity management."

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