Shinhan Bank Signs Cross-Currency Securities Lending Agreement with Kyobo Life Insurance

An Agreement Scheduled with Shinhan Life, a Shinhan Financial Group Affiliate, Early Next Year

[Asia Economy Reporter Yu Je-hoon] Shinhan Bank announced on the 18th that it has signed a cross-currency securities lending agreement with Kyobo Life Insurance. Under this agreement, Shinhan Bank will provide its held KRW bonds as collateral to Kyobo Life Insurance, and Kyobo Life Insurance will lend its held foreign currency securities (U.S. Treasury bonds), enabling Shinhan Bank to raise foreign currency funds in overseas markets using these as collateral.

The company explained that this agreement, concluded at a time when uncertainties in domestic and international financial markets and volatility in foreign currency funding conditions have intensified, is significant in creating a mutually beneficial financial ecosystem by securing a new foreign currency funding method for the bank and diversifying the management of foreign currency securities held by the insurer.

Cross-currency securities lending transactions began to activate after the Financial Supervisory Service issued a non-action letter in August to support stable foreign currency liquidity management for domestic financial companies.

A Shinhan Bank official said, "We agreed with the financial authorities' recognition of the need to proactively prepare by securing various foreign currency funding methods amid an uncertain financial market future, which led us to pursue this agreement," adding, "We will continue to strive to respond flexibly and swiftly to changes in market conditions through efficient resource allocation via mutual cooperation with domestic financial companies."

Meanwhile, Shinhan Bank plans to sign a securities lending agreement with Shinhan Life, an affiliate of Shinhan Financial Group, early next year.