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

good let the gov control bank not bank control gov

Oh man, how 🤔 u know old man soft?
From your experience?

I read 2x, cakap serupa tak cakap. Ape mechanism-nya?

so its good for consumers like us ?

mohon financial ktard masuk n explain

To summarize, can I say all banks will now offer the exact same interest rate for those mentioned individual loans?

So I go Maybank, Public Bank, HSBC, RHB etc for house loan all will offer the same interest rate?

This post has been edited by Mixo Mania: Aug 12 2021, 10:32 AM

No it's not. It will be Standard Base Rate (which is OPR in a nutshell) + spread (different for each bank, this is how much they are earning from you)

They even doesnt give much dividends (some even ask for share as dividends) even they earn alot , reason = preserve cash.

KNN if they keep all the cash how to stimulate the market.

Before this the Base Rate for every bank is different. No one knows how they calculate their Base Rate.

Previous:

Base Rate (OPR+ own bank's rate) + Spread = Interest Rate charged

So we can have Sotong bank charging BR 2.5% + 0.75% = 3.25% to customer A
And we can also have Sotong bank charging 2.5% + 0.5% = 3.0% because he has better risk

Maybank maybe will charge BR 2.1% + 0.9% = 3.0%

Current:

Standard Base Rate = OPR. Every bank will be the same. No more separate Base Rate for each bank. So for customers they will only need to compare the spread for different banks.

Sotong bank: 1.75% OPR + 1.25% spread
Maybank: 1.75% OPR + 1.3% spread

Thanks!

This!

As such there will be better transparency across the banking sector.

Bad news for banks as pricing will be more transparent.

Good news for customers as you will be able to easily compare interest rates across all banks.

No need to figure out the exact base rate for each bank anymore, all bank will have the same base rate after this.

Only the spread will be different. Good job bnm

They don't care, not their problem. They rather wait for government to do it.