Bank of Korea lowers collateral ratio of financial institutions to supply 10 trillion won
https://japanese.joins.com/JArticle/264368
https://news.joins.com/article/23744273
中央日報JoongAng Ilbo Japanese version 2020.04.01 15:02
 
 
 
Lower interest rates on settlement mortgages between financial companies ...
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2020/04/01
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The Bank of Korea (Bank of Korea) has decided to reduce the ratio of collateral securities required for financial institutions to settle the difference.
With the spread of the Wuhan Pneumonia virus (Corona19) increasing the volatility of the financial markets, the aim is to reduce the burden on banks and other financing sources.
It is expected to have a liquidity supply effect of about 10 trillion won (about 874 billion yen).

The Bank of Korea said on Tuesday that it will reduce the ratio of collateral securities required to settle the balance from 70% to 50%.
The difference settlement means that the settlement of funds between banks is postponed first and the difference is settled once at the next day.
Used mainly for internet banking.
The number of payments and the amount of money are reduced compared to the gross payment method, in which payment is made on a case-by-case basis.
However, collateral is needed to manage the risk up to settlement.

The size of the backed securities as of the end of March is 35.5 trillion won, but if the offering ratio is reduced to 50%, it will decrease to 25.4 trillion won.
An official of the Bank of Korea explained, "About 10.1 trillion won of liquidity will be provided to financial markets."
Initially, the Bank planned to increase this ratio gradually from 70% to 100% by 2022 based on international standards (PFMI, Principles on Financial Market Infrastructure).
However, considering that the spread of the Wuhan Pneumonia virus (Corona 19 ) has increased the liquidity risk in the financial world , the 100% achievement date has been postponed from August 2022 to August 2024.
The proposal will go into effect on April 10 following a regular meeting of the Financial Monetary Commission on April 9.

The Bank has also said that it will expand the scope of eligible mortgage-backed securities required to fulfill the differential settlement.
It used to be limited to government bonds and currency-stable securities, but it will temporarily add bonds and bank bonds issued by nine public institutions such as Korea Electric Power Corporation.
This is also to reduce the burden of procurement of secured securities at banks.
 
 
> Decreased the ratio of collateral securities required at the time of settlement by financial institutions to increase circulation funds ...
 
I wonder if it will be okay, or if some financial institutions fail to settle, there is a shortage of collateral and the other financial institution will go bankrupt .
In a climate where Korean society is It's your  fault if you get worse fooled  .
It is a country where the Korean government does not try to keep treaties and inter-state commitments .
Is it useful for security in that country, even though there is no trust of the state ...
Japanese financial institutions should recover their funds immediately and withdraw from Korea.
Approved 289
Opposition 7


From countries where rates cannot be cut
It is a strategy to reduce the collateral ratio and make the funds flow as much as possible, but if the recovery rate only lowers, it can lead to a worse situation, so it is a big hit
Approved 216
Opposition 4


In this emergency,
Even if you shout "Unlimited monetary easing," you can't borrow if you take security.
Companies are full of eyes.
Bold leader, let's go with an "unsecured" loan.
Then the Korean economy achieves a “miracle V-shaped recovery”
The world is amazed, “Moon ’s ultra-modern economic policy that the world should follow.”
I will be awarded the "Top Leader in the World" by the Occult Religion and Unification Church.
Following Hun Sen, right?
Approved 216
Opposition 5


Hey, April, yeah, isn't it already a hell 2-chome?
Despite the debt, the won is weak and the stock plunges .
Isn't there enough anti-Japan campaign?
Do it well, Korean brother.
Approval 122
Opposition 1


Please cash in the assets of Japanese companies as soon as possible.
If you do so, Japan will be able to impose financial sanctions.
Approval 103
Opposition 4


At this time, Japanese financial institutions should withdraw from Korea.
Approval 77
Opposition 1


Looking aside from Korea
On June 31, the Bank of Japan and the Central Bank of Thailand
Concluded a foreign exchange swap agreement with Thai baht that can exchange Japanese yen.
Approval 51
Opposite 0


Japan's funds should be withdrawn as soon as possible while the country has the financial resources!
Before becoming a den of bad debt!
Approved 48
Opposite 0
 

Kinako |
Why is Korea always talking about money?
If you open your mouth, it's just business words.
Only the prospect talks about the economic effect.
On the other hand, it's a swap, expansion.
Just a look? Feeling inferior?
No matter how much you say " Forex FX swap" , you insist on " Currency (Cross Currency) swap" .
If you look at the current global situation, you don't have to talk about money so persistently.
That's really bad.
But don't look at Japan!
Approved 46
Opposite 0
 

Rasputin |
Six months later, is there a country called Korea ?
Can I get the money back for a Foreign Exchange swap ?
Looking forward to.
If you make a mistake, don't look here.
I do not see, do not listen, do not help.
Approval 44
Opposite 0