OPR cut likely to have minimal impact on banks

In the event of an OPR cut, CGSI Research believes floating rate loans will be repriced downward immediately.

PETALING JAYA: Bank Islam Malaysia Bhd and Alliance Bank Malaysia Bhd will be the hardest hit should Bank Negara decide to cut its benchmark interest rate by 25 basis points (bps) this year.

This is largely because of both banks’ high proportions of floating-rate loans and current accounts-savings accounts, according to an analysis by CGS International Research (CGSI Research).