Higher loan growth can offset impact of rate cut

Sulaiman also hinted that AmBank will be lowering its base rate by this week, following the lending rate cuts by other major banks in the country.

KUALA LUMPUR: Banks in Malaysia will benefit from the recent cut in the overnight policy rate (OPR) if the move results in a higher loan growth, according to AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir (pic).

However, he told StarBiz that the banks’ bottom line could potentially take a hit, in the event borrowing activities remain largely unchanged despite the rate cut.