HKMA Stories Slight Improve in Composite Curiosity Charge for December 2024

The Hong Kong Financial Authority (HKMA) has revealed a modest improve within the composite rate of interest, which reached 2.24% by the top 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 Charge Improve

The uptick within the composite rate of interest primarily displays a rise within the weighted funding price for deposits all through December. The composite rate of interest is a key indicator of the common price of funds for banks, encompassing varied interest-rate-sensitive liabilities comparable to buyer deposits and negotiable certificates of deposit.

Historic Context and Calculation Methodology

Information from retail banks, which signify roughly 90% of the overall buyer deposits within the Hong Kong banking sector, are utilized in calculating the composite rate of interest. This fee serves as a mean measure of curiosity bills, though it excludes different prices related to mortgage creation, comparable 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 ebook” (IRRBB) framework for calculating the composite rate of interest and weighted deposit fee. Consequently, these figures usually are not immediately comparable with these from earlier intervals.

Entry to Historic Information

For these , historic knowledge on the composite rate of interest from the top of the fourth quarter of 2003 via December 2024 is accessible within the HKMA’s Month-to-month Statistical Bulletin. This complete knowledge set supplies beneficial insights into the tendencies and shifts within the banking sector’s curiosity prices through the years.

For extra detailed data, please go to the official Hong Kong Financial Authority web site.

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