Yours a new loan?

Approved in Jan but just disbursed. 😊

Dun worry tis rate is stil there. Any1 can make it happen.

In first round of bnm rate cut, covid 19 wasn't a consideration. Loan interest rate cut is unlikely to mitigate supply chain interruption in the short term.

Typical of "for me to know, for you to find out". Answer is same as no answer.

Ironic.......

According to some beans counters; if current market sentiment persists for a few more months, many stretched companies may not survive.

This post has been edited by icemanfx: Mar 7 2020, 12:44 PM

Your loan offered was before 2 time OPR cut

If not mistaken, you having loan with PBB by offering BR + 0.63% = 4.15% (before 23/01/20)

So now your are enjoying 3.65% after 23/01/20 (OPR cut 0.25%) + 03/03/20 (OPR cut again 0.25%)

Of course for those taken loan before 23/01/20, definitely can

I also having 3.70% interest rate offered but I took the loan last year

I pity those going to apply new home loan, definitely not so lucky to enjoy low rate as us






This post has been edited by DisneyHome: Mar 7 2020, 12:50 PM

Meaning u hav no idea wats goin on 😂

S&P: NPLs to rise for Malaysian banks as political uncertainty adds to Covid-19 blow

(Surin Murugiah / theedgemarkets.com March 05, 2020 11:05 am +08)

KUALA LUMPUR (March 5): S&P Global Ratings expects slower credit growth and a higher non-performing loan (NPL) ratio for Malaysian banks amid challenging operating conditions.

In a statement today, the rating agency said banks are facing a multitude of headwinds from a position of strength, supported by their solid performance in 2019.

S&P credit analyst Nancy Duan said the global outbreak of Covid-19 and renewed domestic political uncertainty add obstacles for Malaysian banks, which are already grappling with the effects of a slowing economy and dampened investor and consumer sentiments over the past year.

“We are revising down our credit growth forecast for these banks to 1%-3% in 2020, from the previous 3%-5%.

“We now expect NPLs to reach 1.7%-1.8% of outstanding loans this year, versus 1.5% as of Dec 31, 2019,” she said.

Duan said the forecasts were based on the assumption that the global Covid-19 outbreak will subside and the domestic political stability can be restored over the coming months.

“We will need to revisit our numbers if those risks stretch beyond the second quarter of 2020.

“In our view, the government's recently announced credit relief measures could buy some time for the sectors most disrupted by the coronavirus outbreak,” she said.

Duan said S&P also expects more potential easing from Bank Negara Malaysia to shore up the economy, leading to a further 5-10 basis point compression of banks' net interest margin (NIM) in 2020.

“Our base case assumes stable capital adequacy ratios. However, risks are now tilted to the downside, given added drains on profitability and the rising dividend payouts announced by some banks last week,” she said.

Meanwhile, she said the rating agency expects a generally neutral impact to domestic banks from the RM20 billion stimulus package unveiled last week.

Duan said even before the government's stimulus package, the country's banks had rolled out their own programs to provide relief to struggling corporate borrowers.

“Supportive policies in the package could strengthen lifelines to banks' affected clients.

“However, we feel the special credit facility of RM2 billion is more symbolic than material, and that credit demand will weaken visibly, especially over the first half of 2020,” she said.

Duan said Malaysian banks' direct exposure to the most disrupted sectors, such as hotels, restaurants and airlines, is small at only a single-digit percentage of loan books on average.

“However, the global health emergency and domestic political upheaval are hitting oil prices, consumer confidence, and the broader economy in Malaysia. We will closely monitor such second-order effects and revise our forecasts as necessary.

“Malaysian banks are fundamentally strong, as reflected by their low NPL ratios, light credit costs, and large capital buffers.

"The banks' credit profiles have remained solid despite muted profitability in recent years. In our opinion, conditions in 2020 will put the banks to a much bigger test to their resilience,” she said.


https://www.theedgemarkets.com/article/sp-n...ds-covid19-blow

Why not choose to b the outstanding one tat survives🤔

Cel*ka kerajaan pengkhianat muyidin for lowering FD interest... now retirement age has to be extended... cel*ka...

I also found some opinion from funds manager related to recent OPR cut preview :-


[BNM shared the same sentiment when it said on Tuesday that its monetary policy committee decided to reduce the overnight policy rate (OPR) by 25 basis points to 2.5% to provide a more accommodative environment to support the projected improvement in Malaysia's economic growth amid the global COVID-19 outbreak.

Today, Hong Leong Investment Bank Bhd wrote in a note that Malaysian banks' net interest margin slippage is seen to return in the first quarter of 2020 given the recent OPR cut.

"However, recovery would ensue in the following 3-6 months from downward deposit repricing (lagged impact),” Hong Leong said.]


https://www.theedgemarkets.com/article/klci...ovid19-concerns



What is meant by slippage in banking?

Fresh accretion of NPAs during the year or a falling below the current position of standard assets of the bank is a slippage. ... A sharp rise in slippage has major impact on provisioning and net profit of the bank. Low slippage or no slippage in asset quality shows how asset qualities are managed by the bank.




This post has been edited by DisneyHome: Mar 7 2020, 01:05 PM

PAS urges merger of Malaysian banks to address liquidity concerns
(Ahmad Naqib Idris / theedgemarkets.com March 06, 2020 11:41 am +08)


KUALA LUMPUR (March 6): PAS central economic, real estate and entrepreneur development committee vice-chairman Mazli Noor has urged for the consideration of a merger of banks to address liquidity concerns in the nation’s financial system.

In a statement yesterday, he said that a merger is “inevitable” and that it is a much needed move given the current situation, urging industry players to act fast.

Mazli said the party’s recommendation follows Bank Negara Malaysia's (BNM) decision to cut the overnight policy rate (OPR) by 25 basis points to 2.5%, the lowest level in 10 years, which it said was part of a series of capital controls employed, which also includes the reduction in the statutory reserve requirement (SRR) to 3%.

“Analysts expect this situation to have an impact on net interest margins and earnings of the banking sector," he said, adding that some analysts are expecting the banking sector’s margins to see contraction of between 2% and 3%, which will then affect their earnings by 1% to 2%.

While Mazli agreed that the lower OPR will translate to lower borrowing costs for consumers, he said this has had other effects, especially the decline in the loan to deposit ratio, which he said stood at 87.6% as at January 2019.

He said this has forced banks to compete for deposits, which will affect their earnings.

Given the tight liquidity environment, a merger, he said, is the most optimum way to save the banking industry and to protect consumers.

“With an enlarged size, the banks will have better economies of scale to continue competing. The government has to facilitate this by initiating talks between the banks, suggest on business matching and by giving relevant incentives.

“Governance is also important as in any integration or business merger, good governance is a main factor for success,” he said.

Mazli also urged banks in Malaysia to expand regionally, following in the footsteps of Malayan Banking Bhd, CIMB Group Holdings Bhd and Public Bank Bhd, as the banks would be able to take advantage of an enlarged market which could improve their cash flows.

However, he added that this would only be effective in the event that a merger of the banks is completed.


https://www.theedgemarkets.com/article/pas-...uidity-concerns

Is it the right action taken right now ???

Is it benefit for all banks ???

Is it any benefit for all consumers???

Is it very very close to become monopoly banking industry ???

We are very fortunate.

PBB loan revised to 3.6 (promo) 3.72 (non-promo).

HLB 3.53 (promo) and 3.75 (non-promo)

That's reason why now all new home loan applications need to scale up the spread rate despite BR cut

At the end, the new home loan borrowers definitely will suffer if few years down the road, BNM normalise back the OPR

Sooner or later they need to pay more especially for those purchase from new project property because still no feel pain during construction period but after VP with full instalment start than different story

Easier said than done especially those highly leverage/geared.

poorperly is illiquid, it could take longer than expected to liquidate to adjust. only those prepared before the crisis could escape with less damage or injury.

Banks merger could mean the weaker party is stretched. some well known developers could fold from heavy debts.

This post has been edited by icemanfx: Mar 7 2020, 02:27 PM

So conclusion if i wanna buy for own stay this year, should i proceed or no?

Economic recession has little or no effect on gomen servants.


This post has been edited by icemanfx: Mar 7 2020, 02:58 PM

Buy if below market value.

Handbrake if project.

Whats this got to do with my question lol. I'm not gov servant btw

Project meaning? New launches?