Tag Archives: China

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Composite Interest Rate: End of January 2021

The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Hong Kong Monetary Authority (HKMA) announced today (February 19) the composite interest rate at the end of January 2021. (Note 1)
 
     The composite interest rate, which is a measure of the average cost of funds of banks, decreased by 4 basis points to 0.24 per cent at the end of January 2021, from 0.28 per cent at the end of December 2020 (see Chart 1 in the Annex). The decrease in composite interest rate mainly reflected decreases in the weighted funding cost for deposits during the month (see Chart 2 in the Annex). (Note 2)
 
     The historical data of the composite interest rate from the end of the fourth quarter of 2003 to the end of January 2021 are available in the Monthly Statistical Bulletin on the HKMA website (www.hkma.gov.hk).

Note 1: The composite interest rate is a weighted average interest rate of all Hong Kong dollar interest-rate-sensitive liabilities, which include deposits from customers, amounts due to banks, negotiable certificates of deposit and other debt instruments, and all other liabilities that do not involve any formal payment of interest but the values of which are sensitive to interest rate movements (such as Hong Kong dollar non-interest bearing demand deposits) on the books of banks. Data from retail banks, which account for about 90 per cent 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.

Note 2: Since June 2019, the composite interest rate and weighted deposit rate have been calculated based on the new local “Interest rate risk in the banking book” (IRRBB) framework. As such, these figures are not strictly comparable with those of previous months. read more

East Asia

Grading of beach water quality released

     The Environmental Protection Department (EPD) today (February 19) released the latest grading of water quality for four gazetted beaches that are open all year round for swimming (see Note).       
   
     Three beaches were rated as Good (Grade 1) and one as Fair (Grade 2).
 
Grade 1 beaches are:         

Clear Water Bay Second Beach Golden Beach
Deep Water Bay Beach  
 
Grade 2 beach is:            
Silverstrand Beach  
 
     Compared with the grading released last week, Silverstrand Beach has been changed from Grade 1 to Grade 2.
 
     “The change is generally within the normal range of fluctuation of the bacteriological water quality of the beach,” an EPD spokesman said.
 
     Under the present grading system, beaches are classified into four grades, namely Good (Grade 1), Fair (Grade 2), Poor (Grade 3) and Very Poor (Grade 4), according to the level of E. coli in the water. Grades are calculated on the basis of the geometric mean of the E. coli counts on the five most recent sampling occasions.
 
     A summary of beach grades is published weekly before the weekend. The latest beach grades based on the most current data may be obtained from the EPD’s website on Beach Water Quality (www.epd.gov.hk/epd/beach) or the beach hotline, 2511 6666.
 
Note: In view of the latest situation of COVID-19, the Leisure and Cultural Services Department announced that all gazetted beaches were closed from December 10, 2020, until further notice. read more

East Asia