Tldr for non banking peasant? Is it good or is it bad?

Someone replied. Sorry, ayam not financial knowledgeable as well.

Scared of negative equity calls by banks?
How about interbank rate, not affected?

Wow, interbank rate less than 2% since Corona.
And market still soft like old man kukujiao.
Even bank got money, also no market participants.

Any effect to borrowers?

Apart from the name change

Not no market participants, banks are more strict in giving out loan.

Then what they keep the money for?

Banks always like that: they don't loans when market or economy is bad.

So serve them right, punish them cannot set rates anymore.

Source: https://www.theedgemarkets.com/article/bnm-...ans-august-2022

Not for fixed rate loan. BNM is also pandai ma hehe (i think la coz I'm also not financially knowledgable also)

This post has been edited by clockpulses: Aug 12 2021, 07:06 AM

Based on historical setting of BR, the banks dont deviate from OPR changes anyway. If OPR down 0.25, BR also drop 0.25. This move is purely for consumer ease of comparison between banks. Banks can still set their spread as they wish

only for new loan takers ..

correct me if i'm wrong.

this is good for new borrowers. coz all banks standard base rate, so bank wanna earn, need to approve more loan -> which leads to property bull run and we'll see property prices rise again

Thats just a name change right? BR is always fixed by bnm

so now, the only difference is profit rate between banks?

that should make it easier to choose

Isn’t this like u-turn back to previous BLR (base lending rate)?

Even with BR, in the end every bank still charge roughly similar interest rate due to competition.

Good for consumers cos bloody sotong bank increase their base rate 2x before when they were no increase in the OPR

I send complaint to BNM via telelink but nothing can be done cos banks were free to set their own base rate

Just like US easy to control inflation and deflation