Banks opt against mortgage rate cut to defend market share
Still bruised and battered after the last mortgage war, Bank of China (HK), Hang Seng Bank and Standard Chartered Bank are looking at ways around interest rate cuts to defend market share.
According to market watchers, the big lenders plan to offer different products rather than rush back into a messy round of rate cutting.
'They also may not want to spark concern from the Hong Kong Monetary Authority,' one source said.
The intensifying mortgage war is worrying the banking watchdog and it hopes banks would notify it before adjusting their rates and help it monitor the situation, another source said.
However, an HKMA spokesman said the banks were not required to do so. 'It is not the HKMA's policy to interfere with the business decision of banks to set their mortgage pricing,' he said.
'As a bank regulator, the HKMA keeps close contact with banks to ensure that banks have followed prudent lending policies and their mortgage pricing is reasonable, having regard to their funding and operating costs, and that adequate risk management measures are in place,' he added.