RHB, Alliance cut interest rates

PETALING JAYA: RHB Banking Group and Alliance Financial Group (AFG) both lowered their base rates (BR) and base lending rates (BLR) yesterday, albeit at a lower rate than their competitors – Malayan Banking Bhd, AMMB Holdings Bhd and CIMB Group Bhd.
RHB Bank and AFG’s BR, BLR and base financing rate (BFR) have been reduced by 10bps and 15bps respectively.
Maybank, AMMB and CIMB reduced their rates by 20bps.
Effective this Friday, RHB Bank and RHB Islamic Bank will reduce its BR by 10bps (0.1%) from 3.90% to 3.80% per year and BLR and BFR from 6.85% to 6.75% per year.
 “The revision in rates will spur a more agile financial environment. It will also promote greater domestic demand and boost economic growth, as well as ease the financial burden of our customers,” RHB group managing director Datuk Khairussaleh Ramli said in a statement yesterday. The bank made no mention of deposit rates.
AFG is lowering its BR by 15bps (0.15%) for loans/financing products. With immediate effect, the BR for Alliance Bank Malaysia Bhd, Alliance Investment Bank Bhd and Alliance Islamic Bank Bhd will be revised from 3.97% per year to 3.82% per year. Concurrently, the BLR and the BFR will be revised from 6.82% per year to 6.67% per year. As a result, all loans/financing pegged to BR/BLR/BFR will be adjusted accordingly.
AFG CEO Joel Kornreich believes the rate reduction is favourable to consumers and businesses given the current challenging environment.
“This is in fact the second time this year that Alliance Bank has reduced its BR, after passing on the benefit from the changes to the Statutory Reserve Requirement to borrowers in February 2016.”
Unlike several other banks, AFG had not increased its lending rates prior to the recent OPR cut. In line with this change, AFG’s deposit rates will be revised downwards by up to 15bps.
“To be fair to both our borrowers and depositors, we have reduced the financing rates and deposit rates in equal measure,” Kornreich added.
Malayan Banking Bhd, CIMB Group Holdings Bhd and AMMB Holdings Bhd have earlier announced a 20bps cut in their respective BR, BLR and BFR.