KB Kookmin Bank and Shinhan Life Join Hands... Foreign Currency Securities Lending Agreement Signed

Raising Foreign Currency Funds Using Borrowed Foreign Securities as Collateral

[Asia Economy Reporter Minwoo Lee] KB Kookmin Bank plans to borrow foreign currency securities from Shinhan Life to raise foreign currency funds.

KB Kookmin Bank announced on the 13th that it has signed a foreign currency securities lending agreement with Shinhan Life.

This contract was promoted with the intention of proactively securing new funding sources in preparation for worsening domestic and international conditions. In a situation where market volatility has increased due to high inflation and high interest rates, the bank aims to use foreign currency securities lending transactions as a new means of raising foreign currency funds.

Accordingly, KB Kookmin Bank plans to borrow foreign currency securities held by Shinhan Life and then use them as collateral in overseas markets to raise foreign currency funds. Until now, funding transactions in the form of foreign currency securities lending transactions did not meet the 'simultaneous performance obligation' stipulated in the Capital Markets Act due to time difference issues. Therefore, KB Kookmin Bank received a non-action letter from the Financial Supervisory Service confirming that the 'simultaneous performance obligation' is met even if there is a difference in settlement timing, resolving regulatory uncertainties.

A KB Kookmin Bank official explained, "Currently, KB Kookmin Bank's foreign currency liquidity is sufficiently secured and managed stably, but this contract was made to diversify funding sources that can be utilized in crisis situations," adding, "The execution of the lending transaction will be carried out later considering market conditions and transaction costs."

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