MACAO, Feb. 25 (Xinhua) -- The composite interest rates for the pataca and the Hong Kong dollar fell from 0.87 percent and 1.80 percent in the first quarter of 2020 to 0.66 percent and 1.07 percent in the fourth quarter, the Monetary Authority of Macao announced on Thursday.
This was the first time for Macao to release such figures.
The composite interest rates for the pataca and the Hong Kong dollar dropped 21 basis points and 72 basis points respectively, reflecting a general decline in the funding costs of the local banking sector during the year, according to the authority.
The authority said it started compiling the composite interest rates of Macao's banking sector for the pataca and the Hong Kong dollar in 2020 to enhance the interest rate formation mechanism of the local money market.
The composite interest rates of Macao are measures of the average funding costs of Macao's banking sector, which are the weighted average interest rates of all interest-bearing liabilities, including customer deposits, amounts due to banks, certificates of deposit and other debt instruments, and non-interest-bearing demand deposits on the banks' books, said the authority.
Regular compilation and dissemination of Macao's composite interest rates would facilitate the financial sector to closely track movements in domestic funding costs, thus reinforcing interest rate risk management of the banking system, it said, adding that the composite interest rates will be released on a quarterly basis hereafter.