Oct 1 2020, 12:28 AM
QUOTE(DragonReine @ Sep 30 2020, 07:33 PM)
The BR is dependent on banks’ benchmark cost of funds and liquidity (how much can lend out, how much deposits/investment products it needs etc.) Banks can also review it anytime if there are no changes in the OPR. So each bank has their own base rate depending on how they want to encourage their customers' saving vs spending/loan habits. It's not fixed on OPR although they use OPR as a guide.
Maybank is a GLC (government linked company) so they can afford lower BR. Other banks are not so "blessed" with assistance
Overnight Policy Rate is controlled by BNM via Forex, Bonds and Money Circulation hence which is why they will always wait and see hence the meaning overnight which are usually they will take at least a week or more most of the time deliberate major decisions on OPRMaybank is a GLC (government linked company) so they can afford lower BR. Other banks are not so "blessed" with assistance
Base Rate is set by individual banks which most of the GL banks such as Maybank and Bank Islam which is lower at the moment due to liquidity being pumped in via Malaysian Governmental Securities (MGS), Islamic Bonds (Sukuk) and money circulation via revenue generation through loans, savings, KLSE
If you deep dive why Maybank Base Rate is low is because they are holding a lot of MGS and Sukuk which is their legal obligation set by government in order for them hold the biggest and preferential bank license
Borrowing loan with good credit rating and collateral it is current horse race between Maybank, RHB, CIMB and Ambank for housing followed then by Tier2 house lenders PBB,HLB, Affin
Quote
0.0168sec
0.71
7 queries
GZIP Disabled