Maybank sets base rate at 3.2%

PETALING JAYA: Malayan Banking Bhd (Maybank) has set a group-wide base rate at 3.2%, effective Jan 2, 2015.
President and CEO of Maybank, Datuk Abdul Farid Alias said in a statement on Friday, the base rate will replace the base lending rate (BLR) or base financing rate (BFR) for Islamic financing, as the main reference rate for new retail floating rate loans, in accordance with the new reference rate framework introduced by Bank Negara Malaysia.
He said the base rate was determined based on the benchmark cost of funds of Maybank and Maybank Islamic, as well as the Statutory Reserve Requirement (SRR).
In addition, other components of loan pricing such as borrower credit risk, liquidity risk premium and operating costs will be reflected in a spread above the base rate.
He also noted that all new retail loans and financing such as mortgages, unit trust loans, share margin financing, personal financing and overdraft facilities which are applied for by individual customers will be based on the base rate.
However, loans extended to business entities and for hire purchase/Al-Ijarah Thumma Al-Bai (AITAB) are excluded from using the base rate.
"Retail customers with existing loans and financing which are based on BLR/BFR will continue to have them pegged to the BLR/BFR until settlement/expiry or upon review, where applicable. Customers who have applied for loans and financing before Jan 2, 2015 which are approved thereafter will have the loans and financing pegged to the prevailing BLR/BFR."
"The BLR of Maybank and BFR of Maybank Islamic currently remain unchanged at 6.85%. As such, Maybank and Maybank Islamic will continue to display both their BR and BLR/BFR at all branches and websites," he concluded.