Expansion of Long-Term Fixed-Rate Loans
Contributing to Housing Stability for Ordinary Citizens
On July 8, Korea Housing Finance Corporation (President Kim Kyunghwan) signed a 'Covered Bond Payment Guarantee Business Agreement' with BNK Busan Bank and BNK Gyeongnam Bank.
Korea Housing Finance Corporation (President Kim Kyunghwan) is signing a 'Covered Bond Payment Guarantee Business Agreement' with BNK Busan Bank and BNK Gyeongnam Bank. Provided by Korea Housing Finance Corporation
This agreement aims to expand the supply of long-term, fixed-rate mortgage loans by private financial institutions. Through the issuance of covered bonds, Korea Housing Finance Corporation expects to lower the funding costs for financial institutions and reduce the interest burden for loan users.
Covered bonds are bonds issued using high-quality assets such as mortgage loans held by financial institutions as collateral, and are designed with a structure that ensures high safety and liquidity. Through this agreement, Korea Housing Finance Corporation will provide payment guarantees for the issuance of covered bonds by BNK Financial Group, supporting the expansion of long-term fixed-rate loans in the regional financial sector.
Kim Kyunghwan, President of Korea Housing Finance Corporation, stated, "This agreement is an example of strengthening the financial infrastructure that supports housing stability for ordinary citizens through cooperation with regionally based banks," and added, "Going forward, the corporation will continue to take the lead in creating a sustainable housing finance market through cooperation with various financial institutions."
Last year, Korea Housing Finance Corporation also signed covered bond payment guarantee agreements with major commercial banks such as KB Kookmin Bank, Shinhan Bank, and Hana Bank, and supported the stable procurement of loan funds by the private sector through the actual issuance of 'payment-guaranteed covered bonds.'
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