National Australia Bank (NAB), Australia's largest banking group, has stepped up efforts to increase its share of Hong Kong's home loan market, which it claims will revive early next year. Head of consumer banking for NAB's Hong Kong branch Julia Chan Wai-man said its 'Tailored Home Loan' had been designed ahead of the anticipated high-season. 'Banks usually set new performance targets in the beginning of a new year. We are doing the same and aim to capture 4-5 per cent of the market,' she said. Any adjustment in monthly repayments, as a result of changes in interest rates, will go into effect 12 months after the changes take place - important during periods of interest-rate volatility. It also allows borrowers to shorten the maturity of the loan by increasing instalments and repayments. General manager Paul Law Fung-yuen said the product may earn less interest income for the bank. 'We consider residential mortgages a long-term business for us and the short-fall in interest income should eventually be compensated by an increase in volume,' he said. Mr Law said NAB's interest margin had been narrowed because of Hong Kong's high interest-rate environment as the Government sought to fend-off currency speculators. The bank is writing mortgages of 10.25 to 11 per cent, compared with yesterday's three-month interbank lending rate of 10.25 per cent.