wodenus,

If people can loan to Singapore at 5% but can only loan to Malaysia at 3%, they will sell RM and buy Sin dollar. Interest rate of each country need to work in relationship with other country. The ONLY exception is country like China where RMB cannot be converted and used outside of China.

Dreamer

its already announced

With effect from Feb 3, 2009, Maybank's BLR will be reduced from 6.5% to 5.95%.

BLR for CIMB bank had announced 5.95% BLR drop....
expect all the bank will catch up BLR drop faster.....

Maybank to cut BLR to 5.55% from March 2, it may cut more depends on the economic crisis.

http://www.btimes.com.my/Current_News/BTIMES/articles/25MAYBLR/Article/

Greedy greedy banks again, isn't it the BLR should be slahsed to 5.45%, instead of 5.55%?

BNM lower OPR rate by 0.5%, cut SRR to 1% (banks cost become cheaper), while all of them slashed FD rate 0.5%, but BLR just cut 0.4%. Try to squeeze out more profit out of it from the BNM's move?

moderator pls calm down man...

Not that serious lar. Just feel not right.

BNM lower down interest rate which primary intention is to cheapen the borrowing cost and spur economy acitvities, but if banks don't want to lower the same degree of reluctant to lower (but they instantly lower the FD rate), then it makes no different for BNM to lower the rate. All interest cut benefit are being channelled into more profit for the banks only, while those FD depositors and pensioner getting little interest out of it, but banks still charge the same loan of interest on loan given. The margin of profit (BLR-Fd rate) is widen.

Bank guaranteed depositor their money + interest in bank but no one guaranteed the bank their loan amount + interest with their client. Then this sound better.

Mod, I see your point....I really do.....Sometimes, bankers are D@mn blardee unscrupluous.

May I share my point of view? Feel free to disagree.

1. I'm paying BLR - 2.2% for my loan. Assuming my banker lowers BLR to 5.55% - I'm paying 3.35%. Bank's cost of funding is not necessarily at 2%. They also have prudential liquidity and hedging cost to worry about. Let's say for the sake of discussion - Cost of Funding is at 2.5%. Their gross margin is already 0.85%.

2. 0.85% does not take into account legal subsidies, sales staff commission, other ancillary costs and credit losses. In other words, banks are losing money for the first 3 years (bare minimum) for ZEC packages.

3. Hence why banks protect themselves with early penalty fees for the first 5 years etc.

4. For duration matching - banks may have locked in FD's at a higher rate before the OPR drop. In other words, they need to immediately drop their new FD rates for new depositors to protect their a$$.

5. Am I defending bank's actions? - NO, i am not. I agree with u that this is very unfair to the pensioners and risk averse investors which depend heavily on deposits. Their savings are being literally eaten by inflation.

6. However, it is a tad bit too much IMHO to say that what BNM is doing makes no difference to the economy. It has certainly lightened my payment load - and for countless others who have mortgages to service. It has also made SME's loan commitments much lighter.

7. What irks me most is that some banks may be tightening their lending policies - just for the sake of being conservative. i.e. through lower margins, stricter valuations, etc etc. Good companies are seeing their OD lines being cut because of "industry perceived risk". All sense of good credit judgement on an individual may be thrown out the window.

To me, point 7 above is what's doing maximum damage to our economy. In that sense, any tweaking to monetary policy will remain impotent. I hope that BNM will soon realise this fallacy and take remedial action.

cheers

This post has been edited by Phoeni_142: Feb 26 2009, 12:26 PM

hehehe, wont complaint even if i didnt get full rate cut, I make extra rm500 now from the same rent VS 2 months ago.

"Lucky"..............

Bank always being well known of lend you umbrella when sunshine while taking back the umbrella when raining.

This is what indeed happens in worldwide now especially in US and Europe. Fed or any central banks lower down to zero also has not effect, because bankers are reluctantly to lend after Lehman went under.
That's what happened during September to Nov 2008 which this damage has sent worldwide into recession.

This post has been edited by cherroy: Feb 26 2009, 11:28 PM

bank is very greedy as can see the previous blr cut was .75 points but the bank blr reduce from 6.5 to 5.95 which is only 5.5 gain .2

and the recent blr cut was .50 but the bank cut from 5.95 to 5.55 gain another .1

how can the bank not follow the rate cut it is very unfair as it seem.

when always bank negara annouce cut the next the day the bank revise the unfair rate and implement but the new blr by the bank delay till aweek or 2 only revise.

very unfair to consumer right. always like that bank untung only or on the upper hand

This post has been edited by lowyat888: Feb 27 2009, 02:00 PM

The rich will always abuse the poor
The poor will be poorer and poorer
Malaysian will abuse Malaysian first
This is Malaysia Boleh

Look at international bank - immediate rate cut
Maybank - you tunggu lah durian jatuh

This post has been edited by wufei: Feb 27 2009, 05:35 PM


Attached thumbnail(s)

CIMB also 5.55%

Usually it's Maybank who is the first to cut like the previous 2 cuts, followed by CIMB.

hm...actually, the spread in US between the interest rate and mortgage rate is rather higher than in Malaysia. The problem now in Malaysia is slightly similar with that in US. It's not that banks are being greedy at this moment, it's more that they're reluctant to lend. The latter would be more apparent when we look at the corporate loan lending.

yes..........I'm in agreement with u. There's a common misconception that banks are "greedy" etc.....like i mentioned in my post above, i'm not defending banks.

but, IMO the main reason is due to their general reluctance to lend, and at times, superbly draconian credit policies.

Bank Negara raises OP rate

PETALING JAYA: Bank Negara raised the overnight policy rate (OPR) by 25 basis points to 2.75% yesterday as local economic indicators continued to show robust growth. It is the third time the rates have been increased this year.

The floor and ceiling rates of the corridor for the OPR were correspondingly raised to 2.5% and 3% respectively, the central bank said.

Kenanga Investment Bank Bhd economist Wan Suhaimie Saidi told StarBiz that Bank Negara likely raised rates due to the latest Industrial Production Index (IPI) numbers, which showed a rise of 12.5% in May from a year earlier, higher than market expectations of a 10.5% growth (See B3).

“Even if the June IPI came in lower, the second quarter’s manufacturing output will already be higher than first quarter’s,” he said.

Bank Negara, in its monetary policy statement released yesterday evening, noted that recent trends in industrial production, financing activity, labour market conditions and external trade indicated that economic activity had remained robust in the second quarter.

“Going forward, while external developments may result in some moderation in the pace of growth, the domestic economy is expected to remain strong with continued improvements in private consumption and investment, and augmented by public investment spending,” it added.

Suhaimie said Bank Negara probably wanted to get all the rate hikes “done and over with” before a long pause as the global economy slowed in the second half of the year before picking up again in 2011.

Singapore-based Standard Chartered Bank economist Alvin Liew was quoted by Bloomberg as saying the rate decision was appropriate, given the good things happening in Malaysia’s economy.

“Given that we see the economy slowing down in the second half because of the external environment, we expect the central bank to keep rates unchanged for the rest of the year,” he said.

Bank Negara said that April and May saw modest increases in inflation, mostly on account of supply factors, and it was expected to remain moderate going into 2011.

“Prices are expected to rise at a gradual pace in the coming months in line with the continued improvement in domestic economic conditions, and taking into account possible adjustments in administered prices,” it said.


http://biz.thestar.com.my/news/story.asp?f...96&sec=business

Bank Negara has increased OPR yesterday so we may expect the commercial banks will increase their BLR soon