The five major financial holding companies will provide liquidity and financial support worth KRW 95 trillion by the end of this year to ease the recent tightness in the money market.



The five major financial holding companies chairman attended a meeting presided over by Kim Joo-hyun, chairman of the Financial Services Commission, today (1st) and announced that they would contribute to market stability through market liquidity worth 95 trillion won and financial support for affiliates by the end of this year.



The increase in market liquidity supply is KRW 73 trillion, the participation in the bond market stabilization fund and the stock market stabilization fund is KRW 12 trillion, and the supply of funds to affiliates within the holding group is KRW 10 trillion.



In detail, the five major financial holding companies refrain from issuing bank bonds and expand the supply of funds to public corporations, small business owners, SMEs and large corporations, special bonds, government bonds, corporate bonds, commercial papers (CP) and asset-backed commercial papers (ABCP) and repurchase conditions. We are going to buy bonds (RP).



In addition, we have decided to spare no effort to provide all possible support for stabilizing the money market, such as maintaining the size of the money market fund (MMF) and maintaining credit lines for secondary financial institutions.



The five major financial holding companies have decided to actively expand the supply of funds to small business owners, SMEs, and large enterprises, and also seek ways to support vulnerable borrowers and come up with a plan.



Today's meeting was attended by KB Financial Group Chairman Yoon Jong-gyu, Shinhan Financial Chairman Cho Yong-byeong, Hana Financial Chairman Ham Young-joo, Woori Financial Chairman Son Tae-seung, NH Nonghyup Financial Chairman Son Byung-hwan and the Bank Federation Chairman Kim Kwang-soo.



Kim Kwang-soo, Chairman of the Banking Association, said, "According to the high interest rate situation and risk aversion tendency, we will strengthen the original role of banks so that the funds concentrated in the banking sector are circulated back to the real economy and financial markets through loans and supply of funds, and the banking sector is socially supported by supporting the underprivileged. I will faithfully perform the expected role.”



At the meeting, Chairman Kim Joo-hyun said, "Recently, the short-term financial market has reacted sensitively to some market shocks, and the corporate bond market has also become uneasy, but the market situation is no longer worsening due to the efforts of the government, the Bank of Korea and the banking sector." He expressed sympathy for the market reaction.



Chairman Kim said, “In order for the government measures to be effective, the efforts and cooperation of market participants are necessary for smooth money circulation. We look forward to playing a smooth role in the money market,” he said.



Today, Chairman Kim asked the financial holding chairman to request liquidity supply to stabilize the financial market and continue to provide funds in the real sector with high demand, such as small and medium-sized enterprises (SMEs), so that the flow of funds to the real economy is not blocked.



He also ordered that banks and financial holding companies should actively take steps to support vulnerable borrowers who have fallen out of institutional finance.





Meanwhile, until the financial market stabilizes, it is decided to formally hold a meeting between the Chairman of the Financial Services Commission and the chairman of the five major financial holding companies on a regular basis to check the market situation every other week and establish a regular meeting channel between the working-level staff.



(Photo = Yonhap News)