Composite Interest Rate: End of July 2013

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19 Aug 2013

Composite Interest Rate: End of July 2013

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

The composite interest rate, which is a measure of the average cost of funds of banks, was unchanged at 0.32% at the end of July 2013, same as its level at the end of June 2013 (see Chart 1 in the Annex). Both the weighted funding cost for deposits and HIBORs 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 July 2013 are available in the Monthly Statistical Bulletin on the HKMA website (  The next data release is scheduled for 19 September 2013 and will provide the composite interest rate at the end of August 2013.


Hong Kong Monetary Authority
19 August 2013


Chart 1


End-of-period figures.

Chart 2


End-of-period figures.

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.

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Last revision date : 19 August 2013