Higher cost of fund sees Bank Muamalat raising base rate, BFR

Bank Muamalat Malaysia Bhd has raised the base rate (BR) and base financing rate (BFR) by 11 basis points each effective on Friday due to the increase in the bank's cost of fund.

KUALA LUMPUR: Bank Muamalat Malaysia Bhd has raised the base rate (BR) and base financing rate (BFR) by 11 basis points each effective on Friday due to the increase in the bank's cost of fund.

The Islamic bank said on Friday the BR  would be increased from 3.95% per annum to 4.06%  per annum and the BFR  from 6.95% per annum to 7.06% per annum.

This will effectively impact all floating rate financing packages pegged to BR and BFR.

Its chief executive offier Datuk Mohd Redza Shah said to serve its clients better and to facilitate their reference, its current home financing package for 30 years maturity for best  customers with no lock-in period and financing amount of RM350,000 were BR +1%.

However, it was subject to a ceiling rate of 10.5% and the bank's standard mortgage terms and conditions.

Bank Muamalat is a member of the DRB-Hicom Bhd which owns 70% of the bank’s shares with the remaining stake held by Khazanah Nasional Bhd.