Experience in innovating refinancing tool of the Bank of Korea in the context of market-oriented management

Abstract

As a central bank, the Bank of Korea (BOK) has implemented monetary policy to achieve price and financial stability, thereby contributing to the sound development of the national economy. Refinancing is one of the indirect tools used by the Bank of Korea to achieve these objectives of monetary policy. In the past time,, the Bank of Korea has introduced many innovations in operating this tool, especially from policy financing to regulating market liquidity. This article focuses on studying the Bank of Korea’s experience in innovating refinancing tool within a market-oriented framework, on that basis, proposing some lessons for Vietnam in operating refinancing tool.