Composite Interest Rate: End of March 2017

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21 Apr 2017

Composite Interest Rate: End of March 2017

The Hong Kong Monetary Authority (HKMA) announced today (Friday) the composite interest rate at the end of March 2017.1

The composite interest rate, which is a measure of the average cost of funds of banks, remained unchanged at 0.32% at the end of March 2017(see Chart 1 in the Annex). During the month, the changes in weighted funding cost for deposits and weighted funding cost for interbank funds are very limited (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 March 2017 are available in the Monthly Statistical Bulletin on the HKMA website ( The next data release is scheduled for 18 May 2017 and will provide the composite interest rate at the end of April 2017.

Hong Kong Monetary Authority
21 April 2017



Chart 1

End-of-period figures.


Chart 2

End-of-period figures.

1The 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 : 21 April 2017