Terrill Dickey
November 15, 2024 13:08
The Hong Kong Monetary Authority reported that credit card receivables decreased by 0.6% in the third quarter of 2024, while delinquency and rebooking rates increased to 0.40%.
The Hong Kong Monetary Authority (HKMA) released the results of its credit card lending survey for the third quarter of 2024, showing a slight decline in total card receivables. According to the report, credit card receivables decreased by 0.6% during this period, reaching HK$150.3 billion by the end of September 2024. This follows a slight decline of 0.2% compared to the previous quarter.
Delinquency rate and amortization rate
The combined delinquency rate and contract renewal rate rose slightly from 0.39% at the end of the previous quarter to 0.40% at the end of September. Despite this increase, the quarterly amortization ratio remained steady at 0.58%, indicating that the uncollectible debt ratio remains stable.
market situation
The slight decline in credit card accounts receivable may reflect broader economic conditions as consumers continue to navigate the post-pandemic financial landscape. The stability of charge-off rates suggests that overall credit card debt is manageable for most consumers, although some are struggling.
Implications for the financial sector
The HKMA report’s findings could have implications for financial institutions in Hong Kong, potentially affecting lending practices and credit ratings. As the economic environment evolves, banks and financial institutions may need to adjust their strategies to mitigate the risks associated with credit card lending.
For more information, visit Hong Kong Monetary Authority.
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