BNK Busan Bank Establishes First Foreign Currency CD Issuance Program Among Regional Banks

$2 Billion Limit, Expected Stable Foreign Currency Liquidity Management

BNK Busan Bank (President Bang Seong-bin) has established a foreign currency CD (Certificate of Deposit) program that allows the issuance of foreign currency CDs up to a limit of 2 billion dollars on an ongoing basis in major countries including Asia, becoming the first regional bank to do so.

Busan Bank Headquarters.

Foreign currency CDs are typically short-term foreign currency funding products within one year, and unlike other funding methods, they are exempt from foreign currency soundness charges and deposit insurance fees, allowing for cost reduction in funding.

BNK Busan Bank expects to strengthen not only medium- to long-term but also short-term foreign currency funding by adding the CD program to the already held MTN program (foreign currency bond issuance).

Kim Cheong-ho, Head of the Treasury Market Division at Busan Bank, said, “At a time when central banks worldwide are discussing interest rate cuts, this foreign currency CD program will be an efficient means for timely foreign currency funding and stable foreign currency liquidity management.”

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