Hong Kong banks raise 12-month deposits to 3pc amid tight year-end liquidity

Hong Kong banks are lifting Hong Kong dollar time-deposit rates for 12-month tenors to up to 3 percent, as lenders respond to firmer demand for year-end funding.

This come against a backdrop of tightening liquidity, with the one-month Hong Kong interbank offered rate climbing nearly 70 basis points over the past week to about 3.18 percent.

Digital lenders including Mox Bank, PAObank and Fusion Bank, as well as several mid-sized banks, have adjusted their deposit boards upward.

PAObank, one of the banks still offering some of the higher rates in the market, has trimmed its three-month time-deposit rate to 3 percent from 3.1 percent, with a minimum placement of HK$100 and no new-fund requirements.

OCBC Hong Kong is also offering 3 percent on a three-month deposit. Its one-, six- and 12-month tenors pay 2 percent, 2.8 percent and 2.6 percent, respectively, for premier banking.

Fusion Bank, meanwhile, continues to hold its three-month rate at 3 percent for existing customers. Its six- and 12-month deposits yield 2.5 percent and 2 percent.

For those seeking longer maturities, Mox Bank is providing 3 percent on both its 12-month and 36-month deposits.