Composite Interest Rate: End of May 2025
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (June 20) the composite interest rate at the end of May 2025 (Note 1).
The composite interest rate, which is a measure of the average cost of funds of banks, decreased by 41 basis points to 1.61 per cent at the end of May 2025, from 2.02 per cent at the end of April 2025 (see Chart 1 in the Annex). The decrease in composite interest rate reflected the decreases in the weighted funding cost for deposits and interbank funds 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 May 2025 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.
New requirements for mandatory fitting and wearing of seat belts and placing of mobile telecommunications devices while driving to be implemented from January 25
The Government today (January 8) reminded members of the public that, starting from January 25, all public transport and commercial vehicles' seated passengers must wear seat belts, and all drivers must not place more than two mobile telecommunications devices (MTDs) in front of them during driving, further enhancing road, passenger and driving safety.
All passenger's seats in public and private buses, rear passenger's seats in private light buses and goods vehicles (GVs), and driver's seats and all passenger's seats of special purpose vehicles (SPVs) must be equipped with seat belts in these vehicles first registered on or after January 25. Drivers and passengers occupying the seats of these vehicles (whether newly registered or not), where seat belts are fitted, are required to wear them. Studies show that wearing seat belts will reduce the risk of death and serious injury of drivers and passengers in head-on collisions by about 40 per cent and 70 per cent respectively.
Offending vehicle owners, drivers or passengers will be liable to a maximum fine of $5,000 and imprisonment for up to three months. All passengers occupying seats shall be responsible for wearing seat belts. Among them, any driver who still drives with a passenger aged under 15 seated in the rear seat of a GV or the passenger's seat of an SPV without wearing a seat belt will be subject to a maximum fine of $2,000.
The Government noted that the transport trades are ready for the new requirements. In franchised buses, all seats in newly procured buses have been equipped with seat belts. Together with existing double-deck buses retrofitted with seat belts on the upper-deck seats by operators under government subsidy, to date, around 3500 buses are now equipped with seat belts, representing about 60 per cent of the entire fleet in Hong Kong.
In addition, from the same day onwards, any driver must not place more than two MTDs (i.e. mobile phones, tablet computers or laptop computers) in front of them during driving. The diagonal length of each screen must not exceed 19 centimetres. The MTDs must not obstruct the driver's view of the road and traffic, as well as any mirror, device or camera-monitor fitted for viewing the roads. Offenders will be liable to a maximum fine of $2,000.
The Government has stepped up publicity and public education since November 2025. The Transport Department (TD) has strengthened collaboration with the Police, the Education Bureau, the Information Services Department, the Road Safety Council and the transport trades including public transport operators to introduce the legal requirements through websites, videos, media, social media, the "e-Bulletin for Parents" and publicity posters on traffic signal controllers across various districts. Franchised bus operators have also strengthened publicity and broadcast inside compartments and at bus stops to alert passengers to the new requirement of wearing seat belts.
Members of the public may refer to the TD's webpage on the new requirements on seat belts (www.td.gov.hk/en/road_safety/sb) and placing MTDs during driving (www.td.gov.hk/en/road_safety/mtd) or the Agent T Facebook page (www.facebook.com/AgentT.hk), or call the hotline 28042600 for details.
New requirements for mandatory fitting and wearing of seat belts and placing of mobile telecommunications devices while driving to be implemented from January 25 Source: HKSAR Government Press Releases
New requirements for mandatory fitting and wearing of seat belts and placing of mobile telecommunications devices while driving to be implemented from January 25 Source: HKSAR Government Press Releases
New requirements for mandatory fitting and wearing of seat belts and placing of mobile telecommunications devices while driving to be implemented from January 25 Source: HKSAR Government Press Releases
New requirements for mandatory fitting and wearing of seat belts and placing of mobile telecommunications devices while driving to be implemented from January 25 Source: HKSAR Government Press Releases
