MK Business News Logo
Thursday, April 24, 2014 search icon
검색 search
Top Stories
Opinion Editorial
Subscribe to MK English Newsletter
World Knowledge Forum

Home > mk Business News 프린트 이메일 전송 리스트
S. Korean banks hold sufficient FX liquidity
2012.11.14 10:00:30 | 2012.11.14 15:21:04
South Korean banks are markedly slashing back their mid to long-term foreign exchange (FX) borrowings amid the global economic recession. This is because FX liquidity is sufficient in the local financial market and FX funding conditions are improving thanks to the nation’s upgraded sovereign credit ratings.

[S. Korean banks hold sufficient FX liquidity ] 기사의 본문 이미지

Local banks’ rollover rate for mid to long-term FX borrowings recorded 21 percent, down 76.8 percentage points from 97.8 percent last month, according to data released by the Financial Supervisory Service (FSS) Wednesday.

Meanwhile, the rollover rate for short-term FX borrowings grew 2.2 percentage points to 93.2 percent.

A rollover rate measures a bank’s refunding condition, and the rollover rate of 100 percent means that fresh borrowings are equivalent to soon-to-be maturing debts.

The credit default swap (CDS) premium on the Korea’s sovereign bonds with five-year maturities, which is an indicative of sovereign credit risks, dropped 19bp to 67bp (bp, 1 bp=0.01 percent)

The CDS is a financial derivatives product that insures against the event of loan default for corporations or sovereign nations. Lower CDS premium points to higher confidence in the nation`s economy and lower costs of overseas bond issuances.

Spreads on short-term and long-term FX borrowings dropped to a yearly-low.

Spreads on short-term FX borrowings slid 3.3bp on-month to 2.6bp while spreads on one-year borrowings declined 26bp to 76bp.

[Written by Youngsang-Ryu - Jieun Lee/ edited by Soyoung Chung]


[ⓒ Maeil Business Newspaper &, All rights reserved]

경제용어사전 프린트 이메일 전송 리스트

PDF list
Thurs, Apr 24, 2014
Latest News
Disaster management neglected, unimpl..
S. Korea’s GDP up 3.9% yoy in Q1, hi..
S. Korea’s GDP up 3.9% yoy in Q1, hi..
Maritime ministry blamed for ferry di..
Prosecutors uncover 40 slush fund ban..
Banks’ personnel, branch growth buck..
KDB provides over $190mn loan to Hyun..
Gap yawns between wage earners and se..
Gov’t kickstarts safety checks on fa..
Portion of yen-denominated payments f..
Press Releases&Speeches
[Press Release] ROK and Uzbekistan to..
[Press Release] Trade Settlement Curr..
Today Vocab&Phases
[04/24 Thurs] Accountancy
phenomenal, unpredictable

Terms of Use | Advertise With Us | Privacy Policy | Copyright Policy | Contact Us | Unauthorized collection of e-mail addresses disapproved
Copyrightⓒ 2009 Maeil Business Newspaper & MK Inc. All rights reserved.