Banking
HSBC to cut best lending rate in Hong Kong by 12.5 bps to 5.25%
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HONG KONG (Reuters) – HSBC Holdings said on Thursday it will cut its best lending rate in Hong Kong by 12.5 basis points to 5.25% from 5.375%, effective Dec. 20.
HONG KONG (Reuters) – HSBC Holdings said on Thursday it will cut its best lending rate in Hong Kong by 12.5 basis points to 5.25% from 5.375%, effective Dec. 20.
That followed a 25 basis points cut in the base rate charged through the overnight discount window of the city’s de facto central bank.
(Reporting by Hong Kong newsroom; Editing by Muralikumar Anantharaman)
A lending rate is the interest rate charged by a bank or financial institution on loans provided to borrowers. It represents the cost of borrowing money and is typically expressed as an annual percentage.
Basis points are a unit of measurement used in finance to describe the percentage change in value or interest rates. One basis point is equal to 0.01%, making it useful for discussing small changes in rates.
A central bank is a national institution that manages a country's currency, money supply, and interest rates. It oversees monetary policy and aims to maintain economic stability.
The base rate is the minimum interest rate set by a central bank for lending to commercial banks. It influences the rates banks charge their customers for loans and mortgages.
The effective date in banking refers to the date when a financial transaction, such as a loan or interest rate change, becomes active and enforceable.
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