- KMRC provides liquidity to participating financial institutions, which in turn increases their scope of lending to customers.
- To improve liquidity management by gaining ability to cover unexpected short-term deposit outflow, thereby avoiding potentially costly short-term borrowing or asset liquidation.
- KMRC promotes standardized lending practises across market players due to set eligibility criteria for refinance, which in turn drive market efficiency thus help develop the secondary mortgage market.
- To reduce barriers to entry for smaller lenders, since they will access capital market funding on similar terms and conditions as large lenders
- To reinforce lower overall transaction cost by pooling issuance as compared to PMLs accessing the markets individually. KMRC is regular issuer of long-term, high-quality investments needed by institutions with long term liabilities such as pension funds, social security funds and insurance companies.
