Noob question here
Now the BLR +/-x is replaced by BR + y
What is y? And are both BR & y will fluctuate? And how the opr will affect BR?
Interest changing to BLR + 0% and higher?, Starting from 1 January 2015
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 Mar 31 2015, 07:54 PM
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Apr 1 2015, 01:18 PM
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QUOTE(Jasoncat @ Mar 31 2015, 10:43 PM) I suggest you read the earlier posts to have a better / complete understanding of BR framework. In brief, "y" is made up of credit risk, liquidity risk premium, overhead cost and profit. "y" has to be fixed throughout the loan tenure while BR may fluctuate. Whenever OPR changes, the BR is expected to change at the same direction with the same / similar quantum. Thank you @Jasoncat As the y=spread is fixed throughout our loan tenure, can I say bank with lower BR is better? As I cannot see any difference, even bank to bank BR is different but after sum up with spread, the effective interest is the same. |
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