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What is the Base Rate (BR)? |
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Following the new reference rate framework issued by Bank Negara Malaysia effective 2 January 2015, the new Base Rate (BR) replaces the Base Lending Rate (BLR) in the pricing of new retail floating rate loans and the refinancing of existing loans extended from 2 January 2015 onwards. The Base Rate will be determined by each financial institution’s benchmark cost of funds and the Statutory Reserve Requirement (SRR). Bangkok Bank’s BR is derived from three (3) main components, i.e. the KLIBOR, SRR and term deposits. |
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What are the possible scenarios that could trigger a change in the BR? |
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The BR will be adjusted following any changes to the monetary policy rate, i.e. the Overnight Policy Rate (OPR), as decided by Bank Negara Malaysia, market conditions (eg KLIBOR/SRR movements) and/or Bangkok Bank’s funding structure. |
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change in Base Rate methodology
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change in BNM's Overnight Policy Rate (OPR) |
