Composite Interest Rate: End of November 2015

Press Releases

17 Dec 2015

Composite Interest Rate: End of November 2015

The Hong Kong Monetary Authority (HKMA) announced today (Thursday) the composite interest rate at the end of November 2015.1

The composite interest rate, which is a measure of the average cost of funds of banks, remained unchanged at 0.25% at the end of November 2015. The weighted funding costs for both deposits and interbank funds were largely steady (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 November 2015 are available in the Monthly Statistical Bulletin on the HKMA website (www.hkma.gov.hk).  The next data release is scheduled for 19 January 2016 and will provide the composite interest rate at the end of December 2015.

 

Hong Kong Monetary Authority
17 December 2015

 

Annex

Chart 1

Chart 1

End-of-period figures.

Chart 2

Chart 2

End-of-period figures.

 


  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.

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Last revision date : 17 December 2015