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This case investigates the effects of the Interest Rate Rules (IRR’s) on banks in Hong Kong, as well as on depositors. With the IRR’s, the Hong Kong Association of Banks (HKAB) acted as a cartel to set the maximum interest rate of certain Hong Kong dollar deposits. Charging almost uniform interest rates, banks in Hong Kong have relied on non-price competition to attract deposits. After the deregulations of interest rates in the 1990s and 2000s, banks are free to set deposit rates according to the market condition and their own strategies. Despite the general expectation of banks offering higher rates to compete for deposits, the sluggish loan demand and ample liquidity after the Asian financial crisis veiled the potential price competition among banks. Changes in deposit rates, deposit base, as well as profitability and risk of banks are identified. The findings provide a factual base for analysis of the competition in the banking industry.