Composite Interest Rate: End of February 2013

Press Releases

19 Mar 2013

Composite Interest Rate: End of February 2013

The Hong Kong Monetary Authority (HKMA) announced today (Tuesday) the composite interest rate at the end of February 2013.1

The composite interest rate, which is a measure of the average cost of funds of banks, fell slightly by 3 basis points to 0.25% at the end of February 2013, from 0.28% at the end of January 2013 (see Chart 1 in the Annex). The decrease in the composite interest rate in February reflected declines in the weighted funding costs for both deposits and interbank funds (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 February 2013 are available in the Monthly Statistical Bulletin on the HKMA website (  The next data release is scheduled for 18 April 2013 and will provide the composite interest rate at the end of March 2013.


Hong Kong Monetary Authority
19 March 2013

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 March 2013