Timothy Morano
Jan 17, 2025 09:42
The Hong Kong Financial Authority introduced an increase within the composite rate of interest to 2.24% by December 2024, reflecting elevated weighted funding prices for deposits.
The Hong Kong Financial Authority (HKMA) has revealed a modest enhance within the composite rate of interest, which reached 2.24% by the tip of December 2024. This marks an increase of 4 foundation factors from November’s fee of two.20%, as reported by the HKMA.
Elements Influencing the Fee Improve
The uptick within the composite rate of interest primarily displays a rise within the weighted funding value for deposits all through December. The composite rate of interest is a key indicator of the typical value of funds for banks, encompassing varied interest-rate-sensitive liabilities similar to buyer deposits and negotiable certificates of deposit.
Historic Context and Calculation Technique
Information from retail banks, which signify roughly 90% of the whole buyer deposits within the Hong Kong banking sector, are utilized in calculating the composite rate of interest. This fee serves as a median measure of curiosity bills, though it excludes different prices related to mortgage creation, similar to working, credit score, and hedging prices.
Since June 2019, the HKMA has adopted a brand new native “Rate of interest threat within the banking guide” (IRRBB) framework for calculating the composite rate of interest and weighted deposit fee. Consequently, these figures aren’t instantly comparable with these from earlier durations.
Entry to Historic Information
For these , historic knowledge on the composite rate of interest from the tip of the fourth quarter of 2003 by December 2024 is accessible within the HKMA’s Month-to-month Statistical Bulletin. This complete knowledge set supplies beneficial insights into the developments and shifts within the banking sector’s curiosity prices over time.
For extra detailed data, please go to the official Hong Kong Financial Authority web site.
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