South Korea Lifts Crisis-Era Limit on Banks’ Bond Sales

10/04/2023 11:10
South Korea Lifts Crisis-Era Limit on Banks’ Bond Sales

South Korea has removed a cap on commercial banks’ bond sales enacted during last year’s credit crunch, in a bid to ensure funding for the financial sector.

South Korea has removed a cap on commercial banks’ bond sales enacted during last year’s credit crunch, in a bid to ensure funding for the financial sector.

The Financial Services Commission told Bloomberg about the decision on Wednesday, when asked about a Korea Economic DailyBloomberg Terminal report. The newspaper said authorities had scuppered the rule, which limited banks to issuing an amount of bonds equivalent to 125% of those maturing each quarter.

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