Are you interested in staying updated on the latest financial news and trends in Hong Kong? If so, the Extreme Investor Network is the place for you. Our team of experts in cryptocurrency, blockchain, and finance provide valuable insights and analysis to help you make informed investment decisions.
One recent development that has caught our attention is the minor rise in the composite interest rate reported by the Hong Kong Monetary Authority (HKMA) at the end of June 2024. The rate increased by 1 basis point to 2.62%, up from 2.61% at the end of May 2024. This change reflects the higher weighted funding cost for deposits during the month.
Understanding the composite interest rate is essential for investors looking to navigate the Hong Kong banking sector effectively. This rate serves as a measure of the average cost of funds for banks in Hong Kong, taking into account various interest-rate-sensitive liabilities, including customer deposits, amounts due to banks, and debt instruments. Retail banks, which represent a significant portion of total customer deposits in the sector, contribute data for this calculation.
The factors influencing the composite interest rate, such as the rise in the weighted funding cost for deposits, are crucial for investors to monitor. The HKMA’s official release includes charts illustrating these trends, providing valuable insights into the market dynamics driving the rate changes.
For those interested in historical data and methodology behind the composite interest rate calculation, the HKMA’s website offers access to detailed information dating back to the fourth quarter of 2003. It’s important to note that since June 2019, the rate calculation has been based on the new local “Interest rate risk in the banking book” framework, making comparisons with earlier periods challenging.
Stay informed and stay ahead of the curve by visiting the Extreme Investor Network for in-depth analysis and expert insights on the latest financial developments in Hong Kong and beyond. And remember, knowledge is power in the world of investing.