Hong Kong's top four deposit-taking banks have raised interest rates offered on fixed-term deposits, but, even after adjustments ranging from five to 25 basis points, the new rates remain well below those offered by smaller banks.
The biggest bank, HSBC, lifted its fixed deposit rates by 25 basis points across the board. It raised annualised interest paid on a three-month term deposit to 0.65 per cent and on a 12-month deposit to 1.15 per cent.
With slightly more than 50 per cent of all the money placed on deposit with publicly listed banks, the deposit-rich lender is under no pressure to compete for funding by raising its interest rates for deposits.
At the other end of the scale, Liu Chong Hing Bank, which has a deposit base of a little less than $34 billion and is striving to keep its customers and attract new ones, offers a 1.7 per cent rate on a three-month term deposit and 2.2 per cent for a 12-month deposit.
Hong Kong's second-biggest deposit-taking institution, Bank of China (HK), matched the HSBC move exactly yesterday.
Standard Chartered Bank, which was already offering higher interest rates to its customers, added five basis points to its three-month rate to match the 0.65 per cent rate offered by its big rivals.