Q3 inter-institutional repo average daily balance at 271 trillion won...up 8.1% year on year

[Financial News] The average daily balance of repurchase agreement (repo) transactions, used by financial institutions to raise and manage short-term funds, exceeded 271 trillion won in the third quarter of this year. It rose by more than 8% from the same period a year earlier but edged down from the previous quarter.
According to KSD on the 29th, the average daily balance of inter-institutional repo transactions totaled 271.2 trillion won in the third quarter of this year. That was up 8.13% from 250.8 trillion won in the same period a year earlier and down 0.80% from 273.4 trillion won in the previous quarter. Total transaction value came to 12.86264 quadrillion won, up 3.16% year on year and 2.79% from the previous quarter.
On the repo-sale side, through which funds are borrowed, asset management companies had the largest average daily balance at 151.11 trillion won, accounting for 55.72% of the total. Domestic securities firms accounted for 27.66%, at 75.03 trillion won, while non-residents accounted for 7.73%, at 20.96 trillion won.
On the repo-purchase side, through which funds are lent, trust accounts at domestic banks had the largest share, accounting for 29.73% at 80.63 trillion won. Asset management companies accounted for 27.86%, at 75.54 trillion won, and other institutions accounted for 10.76%, at 29.18 trillion won.
By transaction value between institutions, trades between asset management companies and trust accounts at domestic banks were the largest, at 3.065 quadrillion won. They were followed by trades between asset management companies, at 2.783 quadrillion won, and trades between domestic securities firms and trust accounts at domestic banks, at 1.108 quadrillion won.
Among securities used as collateral in repo transactions, government bonds accounted for the largest share, with an average daily balance of 142.83 trillion won, or 49.50% of the total. Financial bonds accounted for 32.00%, at 92.34 trillion won; special bonds for 9.80%, at 28.28 trillion won; and corporate bonds for 3.61%, at 10.42 trillion won. The share of government bonds fell from both the same period a year earlier and the previous quarter, while the shares of financial and corporate bonds increased.
By transaction term, one-day repos accounted for a strikingly large share. Of the total settlement value of won-denominated repo transactions, one-day repos made up 11,105 trillion won, or 93.04%. The average rate on one-day repos was 2.84%, 0.03 percentage points above the 2.81% call rate and Korea risk-free rate (KOFR).
Inter-institutional repos are transactions in which financial institutions, including banks, securities firms and asset management companies, borrow or invest short-term funds using securities as collateral.
[email protected] Bae Han-geul Reporter