Composite Interest Rate: End of May 2012

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19 Jun 2012

Composite Interest Rate: End of May 2012

The Hong Kong Monetary Authority (HKMA) announced today (Tuesday) the composite interest rate at the end of May 2012.1

The composite interest rate, which is a measure of the average cost of funds of banks, was unchanged at 0.39% at the end of May 2012, same as its level at the end of April 2012 (see Chart 1 in the Annex). Both the weighted funding costs for deposits and interbank funds were steady during the month (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 May 2012 are available in the Monthly Statistical Bulletin on the HKMA website (  The next data release is scheduled for 19 July 2012 and will provide the composite interest rate at the end of June 2012.


Hong Kong Monetary Authority
19 June 2012

1 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.



Chart 1

End-of-period figures.

Chart 2

End-of-period figures.  

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Last revision date : 19 June 2012