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Bank hit by the war tube plus buffer capital

2018-01-11-(Thu)
【28Hse.com】  

Standard Chartered fixed interest rates by 1.68% for the first year H nearly half a percent

Hong Kong Wen Wei Po News (Reporter Su Hongqiang) Although Hong Kong is facing an interest rate hike cycle, it still fights hotly. Yesterday, a large bank launched a fixed-rate mortgagor for first-home buyers. The first-year interest rate reached 1.68%, down nearly half as much as the current inter-bank interest rate (H-share) interest rate (2.15%). Market participants said that the bank mortgage business is fiercely competitive. Given that the current H space is minimally adjusted, it is expected that other banks will follow the launch of similar or new fixed rate mortgage schemes. However, the HKMA announced yesterday that the countercyclical buffer capital of Hong Kong banks will be raised from next year's level of 1.875% to 2.5% from next year to curb the rise in property prices and the risks posed by credit expansion.

Standard Chartered Bank yesterday announced the launch of a fixed interest rate scheme with a lower interest rate than the current H scheme. The fixed interest rate for the first year was 1.68% for the second year, 2.15% for the next year, followed by H + 1.3% for the whole period and capped at P-3% . By Standard Chartered Bank P is 5.25%, or 2.25%. The penalty period is 3 years, longer than the general plan of two years.

Restrictions on the purchase of self-occupied buildings at least 8000000

However, the loan applicant should purchase at least $ 8 million for any non-holding residential property in Hong Kong and for self-occupation. Applicants who claim property for personal use but fail to meet the above criteria will also be eligible for a fixed rate mortgage loan of 1.88% for the first year of fixed rate mortgages and 2.45% for the following year.

Plus counter-cycle buffer capital shocks

Wang Weixian, managing director of Standard Chartered Greater China, North Asia and Hong Kong's personal finance business, said that the United States has stepped into a cycle of rate hikes and the future of Hong Kong's interest rates will gradually increase. The bank launched the first two-year mortgage rate and payment pledge Expenditure plan, I believe it will certainly help to stabilize the initial mortgage supply, especially for the first time homebuyers.

As of January 1, 2019, the HKMA announced yesterday that the counter-cyclical buffer capital (CCyB) applied in Hong Kong will be raised from the current 1.875% to 2.5% to enhance the impact of the banking system in the event of a systemic risk exposure ability. The Chief Executive of the HKMA, Mr Edmund Chan, said that the key indicators such as the gap between credit and GDP and the gap between property prices and rent remained at a high level. In particular, the gap between credit and GDP has exceeded 19%, indicating that systemic risk has not risen As a result, Hong Kong needs to continue to accumulate countercyclical buffer capital.

For a large bank to launch a new fixed-rate mortgage program, the Central Plains Mortgage Brokerage Managing Director Wang Meifeng believes that the bank mortgage business is fiercely competitive. Every year, banks are actively absorbing the mortgage customers of the new year. In view of the fact that the current H-press has minimal room for adjustment, the launch of a new mortgage program with both a preferential interest rate and fixed-rate guarantee will increase market competitiveness. It is expected that other banks will follow the launch of similar or new fixed-rate mortgage schemes.

Meridian: H is still very attractive

Meridian Mortgage referral market director Liu Yuan said that the recent drop in interest rates saw no further signs of rising, I believe H Interest H plan according to the plan is still very attractive to the market, but in the long term there is no room for substantial drop in interest rates, such as the use of H against the plan I believe the actual interest rate will still be hovering at the level of cap, I believe banks may start other benefits such as cash rebate to fight for more business. However, another bank launched a new low fixed rate mortgage program, I believe the next few months the use of fixed rate plan will continue to rise, is expected to challenge the 5% level.

According to Meridian Mortgage Referrals Research Department and the HKMA data show that as of November last year, the choice of H ratio of 92.4%, the choice of P by the proportion of 2.2%. Meanwhile, the rate of interest-earning and other mortgage schemes was 5.4%. The proportion rose by 1.9% month-on-month. The fixed rate was 3.5% on a pro-rata basis, an increase of 1.2% over October.

Liu Yuanyuan said that the fixed-rate plan has achieved remarkable results. With a monthly repayment amount of $ 1 million and a repayment term of 30 years, the monthly contribution in the first year can be saved by 224 HKD compared with the ordinary floating rate plan in the market. The first-year interest expenditure can be saved by 4,464 Yuan, plus cash rebate and capping rate is reasonable, the larger the high-quality silver code more highlights its interest effect.

Translated by 28Hse.com . All right reserved.