Maybank sets Base Rate, Islamic financing rate at 3.2%

KUALA LUMPUR: Malayan Banking Bhd (Maybank) has set its Base Rate (BR) at 3.20%, Friday.  The Islamic base rate for Maybank Islamic was also set at 3.20% effective the same date.

Maybank group president & CEO Datuk Abdul Farid Alias said the BR was determined based on the benchmark cost of funds of Maybank/Maybank Islamic, as well as the Statutory Reserve Requirement (SRR). 

The BR will replace the Base Lending Rate (BLR) or the Base Financing Rate (BFR) in the case of Islamic financing as the main reference rate for all new retail floating rate loans/financing by Maybank/ Maybank Islamic. This is in accordance with the new Reference Rate Framework introduced by Bank Negara Malaysia.

Other components of loan pricing such as borrower credit risk, liquidity risk premium and operating costs will be reflected in a spread above the BR.

Maybank added that under the new framework, with effect from Friday, all new retail loans/financing such as mortgages, unit trust loans, share margin financing, personal financing and overdraft facilities which are applied for by individual customers will be based on the BR. 

However, loans extended to business entities and for Hire Purchase/AITAB are excluded from using the BR.

Retail customers with existing loans/financing which are based on BLR/BFR, will continue to have them pegged to the BLR/BFR until settlement/expiry or upon review, where applicable. 

Maybank also said customers who have applied for loans/financing before Friday  which are approved thereafter will have the loans/financing pegged to the prevailing BLR/BFR.

Farid said the BLR of Maybank and BFR of Maybank Islamic currently remain unchanged at 6.85%.As such, Maybank/Maybank Islamic will continue to display both their BR and BLR/BFR at all branches and websites.