---
title: "The Hong Kong Monetary Authority believes that there is limited room for banks to further lower the best lending rates"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/273627593.md"
description: "According to media reports citing the Vice President of the Hong Kong Monetary Authority, Yuang Guoheng, Hong Kong's deposit interest rates have fallen to zero, and banks have limited room to further lower their prime rates. From a risk management perspective, Yuang Guoheng stated that banks should avoid further narrowing their net interest margins and should maintain a prudent strategy. The non-performing loan rate in Hong Kong slightly increased to 1.98% in the third quarter of last year. Yuang Guoheng pointed out that this reflects a decline in the credit quality of local enterprises, including commercial real estate loans. He added that it is still difficult to determine whether the credit quality in the commercial real estate sector has bottomed out, and challenges remain"
datetime: "2026-01-26T00:39:03.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/273627593.md)
  - [en](https://longbridge.com/en/news/273627593.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/273627593.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/273627593.md) | [繁體中文](https://longbridge.com/zh-HK/news/273627593.md)


# The Hong Kong Monetary Authority believes that there is limited room for banks to further lower the best lending rates

According to reports cited by the media from the Vice President of the Hong Kong Monetary Authority, Yuang Guoheng, Hong Kong's deposit interest rates have fallen to zero, and banks have limited room to further lower their prime rates. From a risk management perspective, Yuang Guoheng stated that banks should avoid further narrowing their net interest margins and should maintain a prudent strategy. The non-performing loan ratio in Hong Kong slightly increased to 1.98% in the third quarter of last year.

Yuang Guoheng pointed out that this reflects a decline in the credit quality of local enterprises, including commercial real estate loans. He added that it is still difficult to determine whether the credit quality in the commercial real estate sector has bottomed out, and challenges remain

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