BLR - Base Lending Rate = BLR is a minimum interest rate calculated by financial institutions based on a formula which takes into account the institutions' cost of funds and other administrative costs.

OPR - overnite policy rate = One of the tools of Monetary policy for the Central Bank (BNM) to attain a set of objectives oriented towards the growth and stability of the economy.

KLIBOR - Kuala Lumpur Inter-bank Offered Rate (KLIBOR)= an interest rate derived from the activities of borrowing and lending funds in the professional inter-bank market. There is a futures controct for this KLIBOR in Malaysia

BLR + KLIBOR = playing fields of bankers... hahaha..besides from making money from the loan out money.. they can hedge, swap, arbitrage and speculates.

This post has been edited by moody5: Sep 11 2009, 12:27 PM