KUALA LUMPUR: UOB Malaysia, RHB Banking Group (RHB) and Malayan Banking Bhd
(Maybank) have successfully executed the first Malaysia Overnight Rate (MYOR)-based three-month interbank money market transaction, incorporating a two-day lookback calculation convention.
In a joint statement, the banks said the landmark transaction was anchored by UOB Malaysia and executed with RHB and Maybank on Aug 14, 2026, marking a significant milestone in the evolution of Malaysia’s money market and supporting industry efforts to adopt risk-free rate-based market conventions.
UOB Malaysia country head of Corporate and Investment Banking Christina Cheah said the successful execution of the money market transaction reflects the strong collaboration between the three banks in supporting the evolution of the country’s financial markets.
"By establishing a transparent benchmark for MYOR-based funding, we are contributing to greater price discovery and helping to build confidence in the adoption of risk-free rate conventions.
"As a leading foreign bank in the country, UOB Malaysia remains committed to partnering local market participants, sharing regional expertise and supporting initiatives that strengthen market resilience and align the domestic financial ecosystem with global standards,” she said.
According to the statement, the transaction enhances transparency and price discovery by making funding levels and spreads visible to a broader network of market participants.
It said this contrasts with bilateral transactions, where pricing information is limited to the counterparties involved.
"By helping establish a transparent MYOR funding curve and an observable reference point for three-month interbank funding, the transaction improves visibility into funding spreads over MYOR and banks’ cost of borrowing, supporting more efficient pricing across the wider market,” according to the statement.
RHB Banking Group’s managing director of Group Wholesale Banking, Nurjesmi Mohd Nashir, said RHB is committed to supporting Bank Negara Malaysia’s (BNM)efforts to develop a deeper and more efficient MYOR market, and to playing an active role in the continued development of Malaysia’s financial markets.
Meanwhile, Maybank deputy group chief executive officer of Global Banking and managing director Farid Kairi said the transaction marks an important first step in establishing the foundation for deeper liquidity, while setting the stage for more MYOR-linked solutions and supporting robust price discovery for market participants.
The central bank introduced MYOR in September 2021 as Malaysia’s Alternative Reference Rate (ARR).
MYOR is calculated as the volume-weighted average rate of actual unsecured overnight Malaysian Ringgit interbank transactions, providing a robust benchmark grounded in deep and liquid overnight funding markets.
The transition to MYOR aligns Malaysia with other major financial markets that have adopted overnight risk-free rates, including Singapore, Japan, Switzerland, the United States, and the United Kingdom. - Bernama
