SEOUL, Oct. 29 (Yonhap) -- Transactions of repurchase agreement (RP) loans among financial institutions grew more than 3 percent in the third quarter from a year earlier, data showed Thursday.
The combined turnover of RP loans extended by local institutions and brokerages reached 12,862 trillion won (US$9.62 trillion) as of end-September, up 3.16 percent from a year ago, according to data from the Korea Securities Depository.
An RP allows a borrower to use a security as collateral for a cash loan at a fixed interest rate and buy it back from the lender at a set price at a later date.
The outstanding value of RP transactions stood at 271.2 trillion won as of end-September, up 8.13 percent from a year earlier, according to the data.
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