On the other hand, following the US Federal Reserve's policy rate cuts, major local banks have Section 4.2). Correspondingly, the average about 3.5% in September 2025 to about 3.25% in early 2026, alleviating the debt-servicing burden negative equity decreased further to 21,304 cases by end-December 2025, down from 31,449 cases at end-September 2025 (Chart 4.21). These cases Programme (MIP), which generally carry higher loan-to-value (LTV) ratios. Given that the remained at a very low level of 0.13% in January 202641, and that over half of the private housing of end-2025, the systemic risks relating to banks' RMLs are properly managed on various fronts. safeguard banking stability. In January 2026, the at around 61% and 39%. The HKMA considers remained at a low level of 0.31% at the end of December conditions, some banks have also reportedly raised their