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Home > Money Market > Products & Service
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Since 1996, KMB has contributed to the sound development of the Money Market in Korea. KMB's effort to introduce fair, transparent, and efficient trade system resulted in minimizing the cost and time of trading funds. Due to a concentrated money trade channel, the monetary policy makers have access to liable monetary information and are able to carry out more efficient policy.
Our staff focus on assisting the clients to efficiently manage their money positions by networking all aspects of financial products. KMB offers a wide breath of Money Market products including Call Money, USD deposit, negotiable instruments such as Certificate of Deposits, Commercial Paper, and Medium Term notes.
The Money Market is supported by KMB's service for Interest Rate Derivative products, including the Over-Night Index Swap. Our derivative product service provides our clients with the opportunity to trade and hedge with combinations of cash and interest derivative products. This service allows us to more closely monitor the client's efficiency and satisfaction in financial business and trading.
KMB continues to focus on developing new products and more advanced communications and network service system for the Money Market. Our endeavor and investments in system technology and qualified staff will allow us to provide our clients with the highest level of service.
Equiped with qualified staffs, and network system, KMB provides the clients with the highest quality service.
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| Call Money Market |
The Call Money Market is where dealers borrow short term money to satisfy their credit needs. Commercial banks that are temporarily short of their reserve requirement are able to borrow from banks having excess reserves through the Call Money Market. The dealers also use the Call Money Market to finance their own inventory of securities or to cover their customers' margin accounts.
The deals are usually made by exchanging verbal agreements through KMB. The most commonly used method to transfer funds between depository institutions is to debit the BOK(Bank of Korea) reserve account of the lending institution and credit the reserve account of the borrowing institution. The size of the transaction is limited to pre-established credit lines in order to minimize the lender's exposure to default risk. Most of the transactions are overnight unsecured loans between two financial institutions, although some transactions have a longer-term maturities.
All types of financial institutions in Korea including commercial banks, security companies, insurance, investment trust, credit unions, branches of foreign banks participate in the Call Money Market.
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