Bank Islam, RHB, Affin Bank And Public Bank Announce Reduction In Rates
KUALA LUMPUR, July 9 (Bernama) -- Bank Islam Malaysia Bhd, RHB Banking Group and Public Bank Bhd have revised their standardised base rate (SBR), base rate (BR) and base financing rate (BFR), following Bank Negara Malaysia’s (BNM) decision to reduce the Overnight Policy Rate (OPR) by 25 basis points (bps), from 3.00 per cent to 2.75 per cent today.
Bank Islam said it is reducing its standardised base rate (SBR), base rate (BR) and base financing rate (BFR) by 25 bps to 2.75 per cent, 3.52 per cent and 6.47 per cent per annum respectively effective on July 10.
Group chief executive officer (CEO) Datuk Mohd Muazzam Mohamed said the strategic move is expected to support economic activity and offer financial relief to individuals and businesses with financing linked to the SBR, BR or BFR.
"The lower OPR also allows Bank Islam greater capacity to boost its financing portfolios, strengthening customer engagement while maintaining asset quality.
"As a purpose-driven and responsible bank, we view the OPR reduction as an opportunity to continue our role in enabling financial resilience, particularly for those most affected by the rising cost of living," he said in a statement today.
Similarly, RHB Banking Group would also reduced its SBR, BR and BFR rate by 25 bps to 2.75 per cent, 3.50 per cent and 6.45 per cent per annum respectively effective on July 10.
The bank also said RHB Bank and RHB Islamic Bank’s fixed deposit rates will also be adjusted downwards by 25 bps.
RHB Bank group managing director and CEO Datuk Mohd Rashid Mohamad said this reduction reflects its continued support for BNM's efforts to stimulate domestic demand through accommodative monetary policy.
"By easing borrowing costs, we are helping households and small and medium enterprises (SMEs) better manage their financial commitments while encouraging consumption and investment amid prevailing global uncertainties," he said.
Correspondingly, Affin Bank Bhd, Affin Islamic Bank Bhd, and Affin Hwang Investment Bank said they would revise their loan and financing reference rates downward by 25 bps or 0.25 per cent, effective on July 11.
The banks will reduced their SBR, BR and BFR to 2.75 per cent, 3.70 per cent and 6.56 per cent per annum respectively.
In line with the revision, Affin Bank's fixed deposit and Affin Islamic's term deposit-i board rates will also be adjusted downward on the same date.
Meanwhile, Public Bank announced that it will lower its SBR, BR, BLR/BFR rates by 0.25 per cent each, effective July 11.
Its managing director and CEO Tan Sri Tay Ah Lek said the bank's SBR is 2.75 per cent in line with the OPR while the BR will be reduced to 3.27 per cent from 3.52 per cent and the BLR/BFR will be reduced to 6.47 per cent from 6.72 per cent.
“At the same time, Public Bank's fixed deposit rates will also be adjusted downwards, effective the same date," he said.
Alliance Bank Malaysia Bhd and Alliance Islamic Bank Bhd have announced the reduction of their SBR, BR, BLR/BFR rates by 25 bps to 2.75 per cent, 3.57 per cent and 6.42 per cent per annum respectively effective July 15, in line with BNM’s reduction in OPR.
"In tandem with the revision, Alliance Bank and Alliance Islamic Bank will also adjust their fixed deposit rates downwards on the same effective date," it said.
-- BERNAMA