[Infostock Daily= Reporter Lee Kang-wook] The government and banks have decided to create a bond market stabilization fund worth 10 trillion won.
The Financial Services Commission and the Financial Supervisory Service held a meeting at the Myeongdong Bank Association in Seoul on the 20th to respond to the new Coronavirus infection (Corona 19 or COVID-19).
The meeting was attended by Eun Sung-soo, Financial Services Commission chairman of the Financial Supervisory Service, Yoo Gwang-yeol, vice chairman of the Financial Supervisory Service, Kim Tae-young, the president of the Korea Federation of Banks Kim Tae-young and eight major bank presidents attended.
Participants gathered to allow the bond market stabilization fund jointly organized by the financial sector in December 2008 to be restarted without any hitches in order to overcome the global financial crisis.
As a result, banks have decided to contribute to the creation of funds worth 10 trillion won as agreed.
The bond market stabilization fund (10 trillion won) was created in 2008, when the bank paid 8 trillion won, and life insurers, non-life insurers, and securities firms were responsible for the remaining 200 million won.
The Financial Services Commission and the banking sector plan to increase the size of bond market stabilization funds if necessary, as they see the exhaustion of funds.
Reporter Lee Kang-wook gaguzi@naver.com