Commercial, state-run banks sign $4.6 billion repo to save credit union
Published: 11 Jul. 2023, 11:22
![A notice assuring the safety of deposit and installment savings is posted at a Korean Federation of Community Credit Cooperatives branch in Jongno District, central Seoul, on Thursday. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2023/07/11/5a27ec92-d26e-4a30-bdc2-245f2f31379e.jpg)
A notice assuring the safety of deposit and installment savings is posted at a Korean Federation of Community Credit Cooperatives branch in Jongno District, central Seoul, on Thursday. [NEWS1]
Commercial and state-run banks signed a more than a six trillion won ($4.6 billion) worth of repurchase agreement with the troubled Korean Federation of Community Credit Cooperatives (KFCC) to provide liquidity amid its soaring delinquency rate.
Five state-run banks — KB Kookmin, Shinhan, Hana, Woori, NongHyup — and the state-run Korea Development Bank and the Industrial Bank of Korea signed the agreement following the government request last week to cooperate in providing liquidity to the KFCC, according to a Yonhap report Monday.
Repurchase facilities allow for raising cash in exchange for collateral.
The commercial banks were each asked to prepare 1 trillion won of financing, Reuters reported Monday.
BY JIN MIN-JI [jin. minji@joongang.co.kr]
with the Korea JoongAng Daily
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