Tuesday, April 18, 2017

Short-term money market increased by 15% last year ... "This year expansion potential risks."



[Korea Selected financial newspaper reporters - showed increased last year due about the short-term financial products market size by 15% within one year up to 250 billion.

According to the 18th, 2016 Money Market Review 'booklet was published by the Bank of Korea, the end of 2016 based on short-term financial market is 249.9 trillion won to 31 trillion compared to increased 900 billion won (14.6%), the end of 2015. The annual growth rate was its highest level in three years since 2013 (16.8%).

In each individual market repurchase trading (RP), trading volume has increased by 13 trillion 100 billion won (33.8%), securities firms and asset management companies are expanding while funding through the RP market.

Commercial paper (CP) issuance balance has increased, in the center of the deposit-backed CP as an underlying asset, 17.9 trillion won (14.6%).

On the other hand kolsijang (daily average balance) and certificates of deposit (CD) issued balance has decreased by 2.1 trillion won (-11.7%), 9000 million (-13.0%).

Officials predicted that domestic financial companies generally increase the potential risk of short-term financial markets this year.

Researching the Bank of Korea survey of the market participants, including 123 people in December 12 to 23 banks, securities firms, asset management companies last year, 57.8% of the total was expected to be "a potential risk will be expanded over the previous year. On the other hand, in the short-term response of financial markets' potential risks it will be reduced, while only 18.1%.

This year the main potential risk factors (multiple responses) as the most cited "the US fiscal and monetary policy direction" (78.3%). Followed by "domestic macroeconomic situation changes (47.0%) were in the order of such" financial regulation and institutional change '(36.1%), corporate restructuring, including changes in the domestic business environment "(19.3%).

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