Terrill Dicki
Nov 15, 2024 13:08
The Hong Kong Financial Authority experiences a 0.6% lower in bank card receivables for Q3 2024, with the delinquent and rescheduled ratio rising to 0.40%.
The Hong Kong Financial Authority (HKMA) has launched its bank card lending survey outcomes for the third quarter of 2024, revealing a slight decline in complete card receivables. In accordance with the report, bank card receivables decreased by 0.6% throughout this era, reaching HK$150.3 billion by the tip of September 2024. This follows a smaller lower of 0.2% within the earlier quarter.
Delinquency and Cost-off Ratios
The mixed delinquent and rescheduled ratio elevated barely, reaching 0.40% on the finish of September, in comparison with 0.39% on the finish of the earlier quarter. Regardless of this enhance, the quarterly charge-off ratio remained regular at 0.58%, indicating stability within the price of debt written off as uncollectible.
Market Context
The slight decline in bank card receivables might replicate broader financial circumstances, as customers proceed to navigate the post-pandemic monetary panorama. The soundness in charge-off ratios means that whereas some customers are struggling, general bank card debt stays manageable for many.
Implications for the Monetary Sector
The findings of the HKMA report maintain implications for monetary establishments in Hong Kong, probably influencing lending practices and credit score assessments. Because the financial setting evolves, banks and monetary establishments might have to regulate their methods to mitigate dangers related to bank card lending.
For extra particulars, go to the Hong Kong Financial Authority.
Picture supply: Shutterstock
