3rd financial sector fund flow inspection and communication meeting
Flexible issuance of bonds due next year
Banks will resume issuance of bank bonds, which had been refrained from in order to stabilize the bond market. First of all, the plan is to push for issuance of 2.3 trillion won worth of bank debentures due at the end of the year, and to adjust the timing and size of issuance for bonds maturing in January next year and later.
On the 19th, the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea held the ‘third financial sector fund flow inspection and communication meeting’ with the banks and said, “For the time being, the banking sector will gradually start issuing bank bonds while communicating with the financial authorities at a level that does not burden the market. We decided to restart,” he said.
Previously, financial authorities asked banks to refrain from issuing bank bonds, and banks minimized bond issuance. Since October 21, KB, Shinhan, Hana, Woori, and NH Nonghyup have not issued any issuance.
The financial authorities plan to closely examine the bond market at the beginning of the year and at the beginning of the year in line with the banks’ plan to issue bank bonds. In addition, the bond market stabilization fund and corporate bond/CP purchase program will be actively and flexibly operated so that the effects of market construction on credit financial debentures and general corporate bonds can be minimized.
The financial authorities said, “We will continue to communicate with the financial industry and market experts to stabilize the financial market, including the bond market and short-term funds market, and fund transfers from retirement pensions, reverse money moves, and funding competition in consideration of year-end fund market conditions.” We plan to check and manage it so that there is no leaning.”
“In preparation for internal and external uncertainties, we will thoroughly supervise banks and other financial institutions to ensure that they are fully prepared for risk management, such as securing sufficient loss absorption capacity and liquidity, while closely inspecting and responding to corporate financial conditions and real estate finance,” he said. .
