31/1/2018-3

The loan-to-home burden ratio has dropped to 35% with credit risk under control

As property prices continued to rise, the HKMA started to tighten mortgage approvals in 2010 and its contribution to income ratio can not exceed 50%. As a result, the relevant ratio dropped to 35% in November last year, down from 41% before the measure Level.

Newly approved residential mortgage into the latest 49%

Another measure of the property market risk index – the average number of new mortgage mortgages, up 49% from November last year, down from 64% of the top-down counter-cyclical measures taken by the HKMA in 2009.

The ratio of overdue loans and rescheduled loans in Hong Kong’s banking sector was only 0.45% at the end of September last year. The specific loan ratio (NPL ratio) was 0.62% over the same period.

Earlier, the HKMA also said that the banking credit risk in Hong Kong is still manageable but homebuyers should be mindful of the risks posed by the increased ability to make contributions and the possible increase in interest rates.

Starting from 2009, the HKMA tightened mortgage repayments of residential properties of $ 20 million or above from 70% to 60%. Subsequently, it took a number of strikes and set a ceiling of mortgage loans of up to $ 7 million by 2015, all down to 60%.

With the steady economic performance in the Mainland and periphery, the bank’s operating outlook is clearer. The net interest margin for the first three quarters of last year was 1.43%, representing a widening of 1.32% over the same period of 2016.

In the long run, Hong Kong, as the world’s largest offshore renminbi center, saw its related activities increase with the significant rebound in the renminbi exchange rate in the second half of last year. The renminbi pool in Hong Kong, a combination of customer deposits and certificates of deposit, was 6,194 billion at the end of November last year Yuan (RMB, same below), representing an increase of over 4% from the sum of 595.1 billion yuan in the first half of last year.

Meanwhile, Hong Kong also continued to be the major hub for offshore RMB activities. For the full year of last year, the average daily transaction amount of the Hong Kong Renminbi Instant Payment Settlement System (RTGS) was $ 903.6 billion, up from $ 893.3 billion in August last year Further rise, and non-Mainland related transactions accounted for the vast majority.