Koreans get to work on covered bonds as new law looms

22 Oct 2012

Korean issuers are starting to prepare covered bond programmes in advance of the country’s new law — after more than a year of inactivity. The South Korean Financial Services Commission published the draft bill of its Covered Bond Act on Tuesday, and said it would submit the bill to parliament by December.

The FSC expects covered bonds to reduce issuers’ funding costs and provide stable funding in the event of a financial crisis.

“Similarly to Australia, South Korean banks are dependent on wholesale funding, and so they have more of a need to look at broadening funding channels and tools in ...

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