Composite interest rate: End of March 2017
Hong Kong (HKSAR) - The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (April 21) the composite interest rate at the end of March 2017.*
The composite interest rate, which is a measure of the average cost of funds of banks, remained unchanged at 0.32% the end of March 2017 (see Chart 1 in the Annex). During the month, the changes in weighted funding cost for deposits and weighted funding cost for interbank funds are very limited (see Chart 2 in the Annex).
The historical data of the composite interest rate from the end of the fourth quarter of 2003 to the end of March 2017 are available in the Monthly Statistical Bulletin on the HKMA website (http://www.hkma.gov.hk/" target="_blank">www.hkma.gov.hk). The next data release is scheduled for May 18, 2017 and will provide the composite interest rate at the end of April 2017.
* The composite interest rate is a weighted average interest rate of all Hong Kong dollar interest bearing liabilities, which include deposits from customers, amounts due to banks, negotiable certificates of deposit and other debt instruments, and Hong Kong dollar non-interest bearing demand deposits on the books of banks. Data from retail banks, which account for about 90% of the total customers' deposits in the banking sector, are used in the calculation. It should be noted that the composite interest rate represents only average interest expenses. There are various other costs involved in the making of a loan, such as operating costs (e.g.
staff and rental expenses), credit cost and hedging cost, which are not covered by the composite interest rate.
Published on: 2017-04-21
Limited copyright is granted for you to use and/or republish any story on this site for
any legitimate media purpose as long as you reference 7thSpace and any source mentioned in the story above. Please
make sure to read our disclaimer
prior to contacting 7thSpace Interactive. To contact our editors, visit our online helpdesk
. If you wish submit your own press release, click here