Affin, Alliance Bank to cut lending and deposit rates after OPR reduction


KUALA LUMPUR: Affin Bank Bhd, Affin Islamic Bank Bhd, and Affin Hwang Investment Bank will lower their loan and financing reference rates by 25 basis points (0.25%), following Bank Negara’s cut in the Overnight Policy Rate (OPR) from 3% to 2.75% on July 9.

In a statement, Affin said the revised rates will take effect on July 11.

Affin said the statutory base rate (SBR) will be reduced from 3.00% per annum to 2.75%, while the base rate (BR) will be revised from 3.95% to 3.70%.

The base lending rate (BLR) and base financing rate (BFR) will be lowered from 6.81% to 6.56% per annum.

In line with the revision, Affin Bank’s fixed deposit and Affin Islamic’s Term Deposit-i Board Rates will also be adjusted downward, effective July 11.

Meanwhile, Alliance Bank Malaysia Bhd and Alliance Islamic Bank Bhd will reduce their SBR by 25 basis points to 2.75% per annum to mirror the OPR effective July 15.

Alliance Bank and Alliance Islamic Bank will reduce their BR by 25 basis points, from 3.82% to 3.57% per annum, while the BLR and BFR will be revised from 6.67% to 6.42% per annum.

The rate adjustments are in line with Bank Negara Malaysia’s Reference Rate Framework, which took effect on Aug 1, 2022.

Under the framework, the SBR is used as the common reference rate for all new retail floating-rate loans and financing, and is linked solely to the OPR.

Fixed deposit rates will also be adjusted downward on the same date.

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