Maybank lowers base rate to 3pc
KUALA LUMPUR: Malayan Banking Bhd (Maybank) has revised downwards its base rate and base lending rate (BLR) in response to Bank Negara Malaysia’s Overnight Policy Rate (OPR) cut.
In a statement yesterday, Malaysia’s largest lender said it would be revising down its base rate by 20 basis points to three per cent per year from 3.2 per cent.
Accordingly, Maybank has also revised its BLR to 6.65 per cent per year from 6.85 per cent.
The bank said Islamic base rate and base financing rate (BFR) would be reduced by 20 basis points to three per cent and 6.65 per year, respectively, from 3.2 per cent and 6.85 per cent previously.
The changes are effective today. In line with the reduction in BLR/BFR and base rates, Maybank’s deposit rates will also be revised downwards by up to 20 basis points.
The last revision in Maybank’s BLR was in July 2014 when it was raised by 25 basis points to 6.85 per cent per year.
Meanwhile, CIMB Group Holdings Bhd said any changes in the bank’s base rate would be on the change of effective cost of fund, which is dependent on a host of factors, such as
to three per cent and 6.65 per year, respectively, from 3.2 per cent and 6.85 per cent previously.
system-wide liquidity and competitor strategy, and not solely dependent on OPR movement.
CIMB Group head of treasury and markets Chu Kok Wei said under the new base rate framework introduced by Bank Negara since last year, the linkage of base rate for lending to the cost of fund (deposit) of banks is strengthened.
He said by virtue of this, the impact on bank’s net interest margin would be smaller than under the previous BLR framework where timing gap between loan and deposit pricing was more significant.
“We will monitor this closely and adopt the appropriate strategy as and when necessary,” he told Business Times yesterday.