Hong Kong's negative interest rate policy on the eve and its pros and cons

Abstract

On December 19, 1987, the Hong Kong Association of Banks passed a new regulation, the Special Interest Rate Ordinance. The essence of this ordinance is to authorize the interest rate group of the Association of Banks to levy interest on banks with large net balances, if necessary, after consultation with the Financial Secretary. This measure was put into effect on March 10 this year. This is the first time the Hong Kong government has proposed a negative interest rate policy in recent years.