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Hong Kong loan growth quickens to +7.7% in September; HKD loan-to-deposit ratio rises to 70.3%

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Key points

Implications for lenders

With the HKD loan-to-deposit ratio at 70.3% and Hong Kong dollar deposits decreasing on the month (-1.1%), lenders that rely on bank funding may see higher or less stable funding costs. Faster loan growth of +7.7% can bring more competition for creditworthy borrowers, so underwriting standards and pricing for floating-rate loans can be reviewed against the Base Rate of 4.25%.

Implications

ExecutivesBanks may face tighter Hong Kong dollar funding if deposit outflows continue while loan demand picks up.
InvestorsFaster loan growth supports bank volumes, but the release does not show which borrower groups drove it.
OperatorsNon-bank lenders funded by bank lines can review pricing and tenor terms in case banks' Hong Kong dollar liquidity tightens.

Facts

The Hong Kong Monetary Authority (HKMA) published monetary statistics for September 2026 on 30 October 2026. Total loans and advances of authorized institutions increased +0.7% in September, after +0.3% in August. 1 In the year to end-September they increased +7.7%, up from +7.0% in the year to end-August. 2

Loans for use in Hong Kong, including trade finance, rose +0.7% (after +0.4% in August). 3 Loans for use outside Hong Kong rose +0.6% (after virtually no change in August). 4

Total deposits rose +7.7% year on year (+0.4% on the month). 5 Hong Kong dollar deposits decreased on the month (-1.1%), after +2.2% in August. 6 With Hong Kong dollar loans rising and Hong Kong dollar deposits falling, the HKD loan-to-deposit ratio rose to 70.3%, up from 69.3% at end-August. 7

Analysis

Year-on-year loan growth has quickened for two months in a row: from +6.6% in July 8 to +7.0% in August 9 and +7.7% in September. On the month, September's +0.7% was also faster than August's, so the pick-up is not only a base effect.

The HKD loan-to-deposit ratio has moved within a narrow band: 71.5% at end-June 10, 69.3% at end-August 11 and 70.3% at end-September. The HKMA attributes the September rise to Hong Kong dollar loans increasing while Hong Kong dollar deposits decreased, after Hong Kong dollar deposits had risen in August. The September figures were also the first month-end data since the HKMA raised its Base Rate on 17 September; the rate stood at 4.25% after the 29 October decision. 12

HKD loan-to-deposit ratio (%)
020406080712026-0571.52026-0670.72026-0769.32026-0870.32026-09
HKD loan-to-deposit ratio (%)
2026-0571
2026-0671.5
2026-0770.7
2026-0869.3
2026-0970.3

Hong Kong dollar loans / Hong Kong dollar deposits, authorized institutions, month-end (HKMA) · Source: HKMA monthly monetary statistics (2026-05, 2026-06, 2026-07, 2026-08, 2026-09)

Counterpoints and uncertainties

The release gives no split between household and corporate borrowers, so the September rise may come from a few large corporate or trade-finance loans rather than broad consumer demand. One month's fall in Hong Kong dollar deposits can reverse quickly with interbank rates and equity-market flows.

Key figures

  1. Total loans and advances, month-on-month (September 2026): +0.7% (after +0.3% in August). Month-on-month change in total loans and advances of authorized institutions (HKMA). Authorized institutions in Hong Kong. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Monetary Statistics for September 2026
  2. Total loans and advances, year-on-year (September 2026): +7.7% (up from +7.0% in the year to end-August). Year-on-year change in total loans and advances of authorized institutions (HKMA monetary statistics). Authorized institutions in Hong Kong. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Monetary Statistics for September 2026
  3. Loans for use in Hong Kong, month-on-month (September 2026): +0.7% (after +0.4% in August). Month-on-month change in loans for use in Hong Kong, including trade finance (HKMA). Authorized institutions in Hong Kong. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Monetary Statistics for September 2026
  4. Loans for use outside Hong Kong, month-on-month (September 2026): +0.6% (after virtually no change in August). Month-on-month change in loans for use outside Hong Kong (HKMA). Authorized institutions in Hong Kong. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Monetary Statistics for September 2026
  5. Total deposits, year-on-year (September 2026): +7.7% (+0.4% on the month). Year-on-year change in total deposits with authorized institutions (HKMA). Authorized institutions in Hong Kong. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Monetary Statistics for September 2026
  6. HKD deposits, month-on-month (September 2026): -1.1% (after +2.2% in August). Month-on-month change in Hong Kong dollar deposits with authorized institutions (HKMA). Authorized institutions in Hong Kong. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Monetary Statistics for September 2026
  7. HKD loan-to-deposit ratio (end-September 2026): 70.3% (up from 69.3% at end-August). Hong Kong dollar loans / Hong Kong dollar deposits, authorized institutions (HKMA). Authorized institutions in Hong Kong. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Monetary Statistics for September 2026
  8. Total loans and advances, year-on-year (July 2026): +6.6%. Year-on-year change in total loans and advances of authorized institutions (HKMA monetary statistics). Authorized institutions in Hong Kong. Basis date: 31 Jul 2026. Source: HKMA via HKSAR Government (2026-08-31): Monetary statistics for July 2026
  9. Total loans and advances, year-on-year (August 2026): +7.0% (up from +6.6% in the year to end-July). Year-on-year change in total loans and advances of authorized institutions (HKMA monetary statistics). Authorized institutions in Hong Kong. Basis date: 31 Aug 2026. Source: Bastille Post (reproducing HKMA release of 2026-09-30): Monetary statistics for August 2026
  10. HKD loan-to-deposit ratio (end-June 2026): 71.5% (up from 71.0% at end-May). Hong Kong dollar loans / Hong Kong dollar deposits, authorized institutions (HKMA). Authorized institutions in Hong Kong. Basis date: 30 Jun 2026. Source: Dimsum Daily (reporting HKMA release for June 2026)
  11. HKD loan-to-deposit ratio (end-August 2026): 69.3% (down from 70.7% at end-July). Hong Kong dollar loans / Hong Kong dollar deposits, authorized institutions (HKMA). Authorized institutions in Hong Kong. Basis date: 31 Aug 2026. Source: Bastille Post (reproducing HKMA release of 2026-09-30): Monetary statistics for August 2026
  12. HKMA Base Rate: 4.25% (unchanged; last raised by 25 bp on 17 September 2026)
    Figure as reported by China Daily Asia and Trading Economics from the HKMA announcement of 29 October 2026.
    . Base Rate of the Discount Window, set by a pre-set formula; decision of 29 October 2026. Hong Kong Monetary Authority. Basis date: 29 Oct 2026. Source: China Daily Asia (2026-10-29): HKMA holds base rate steady, tracking Fed move

Sources

  1. HKMA (2026-10-30): Monetary Statistics for September 2026primary
  2. HKMA (2026-09-30): Monetary Statistics for August 2026primary
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A Japanese version of this article is available: 日本語版

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