Selected as an Eligible Institution for Bank of Korea's Open Market Operations RP Trading for Two Consecutive Years
K Bank announced on the 24th that it has been selected as an eligible institution in the repurchase agreement (RP) trading sector for the Bank of Korea's open market operations.
Open market operations are a key monetary policy tool in which the central bank directly influences market liquidity and interest rates by buying and selling securities such as government bonds to financial institutions in the financial market.
To efficiently control market liquidity, the Bank of Korea annually selects eligible institutions for open market operations in three categories: competitive bidding and subscription for monetary stabilization bonds and simple security trading; RP trading; and securities lending.
K Bank has been included as an eligible institution in the RP trading sector for the second consecutive year, following last year.
Institutions selected as eligible for RP trading can conduct RP transactions directly with the Bank of Korea and automatically qualify as eligible institutions for the monetary stabilization account.
Through this, K Bank can quickly secure liquidity in case of unexpected large-scale deposit withdrawals and can stably manage high-liquidity assets to strengthen asset soundness.
The Bank of Korea comprehensively reviews factors such as financial soundness ratios, total deposits, and asset size when selecting eligible institutions, as dealing with too many institutions may weaken market functions.
A K Bank representative stated, "Being selected as an eligible institution for the Bank of Korea's open market operations for two consecutive years demonstrates recognition of K Bank's financial soundness and external credibility," and added, "We will continue to build customer trust through stable liquidity management and responsible asset operations."
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