ABM: Banks have leeway to adjust base rates

Malaysian banks have sound buffers, with adequate system profitability, capitalisation and liquidity which will help cushion against rising asset-quality, funding and liquidity risks.

KUALA LUMPUR: The Association of Banks in Malaysia (ABM) said commercial banks can exercise their discretion in revising their reference rates in response to a change in their funding costs.

It said in a statement yesterday that from Jan 2, 2015, commercial banks are allowed to do this regardless of whether there is a change in Bank Negara overnight policy rates (OPR).