Banks slash interest rates

PETALING JAYA: Several banks have slashed interest rates imposed on loans and more are expected to join in the fray.
Four banks - RHB Banking Group, Public Bank Group, United Overseas Bank Bhd (UOB) and Malayan Banking Bhd (Maybank) - have cut their respective base lending rates (BLR) from 5.95% to 5.55%.
RHB Bank and Public Bank will also be reducing each of its Islamic bank’s base financing rate (BFR) by the same quantum.
This follows the move by Bank Negara Malaysia to bring down the Overnight Policy Rate (OPR) from 2.5% to 2% on Tuesday.
RHB Banking Group managing director Michael J. Barrett said customers will be able to pay less to service their existing loans with floating rates while individuals and businesses will enjoy lower borrowing costs.
“We want to be able to help borrowers during these challenging times and provide our customers with more financial support,” he said in a statement on Thursday.
Public Bank Group chairman Tan Sri Dr Teh Hong Piow said the bank’s new rates will take effect on Tuesday.
“The reduction of BLR and BFR is part of the group’s on-going commitment towards the creation of a more supportive monetary environment which will help to sustain economic growth in the country,” he said.
A UOB Bank spokesperson said the bank would reduce its BLR on March 6.
Maybank said on Wednesday that it would begin implementing its new rates on Monday.
It is learnt that other banks are currently taking initiatives to restructure their rates and will be announcing lower BLR soon.
The Association of Banks said in a statement that the downward revision of monthly loan repayment instalments was expected to be completed around the end of the first quarter of this year.
“Banks will be officially notifying their customers on the quantum of reduction of the loan repayment instalments and the effective date directly,” it said.

tunku : it's a good initiative by the banks to slash their interest rates.this is crucial time for all and the bank can help ease a little on the situation.we hope all the bank will follow these 4 banks initiative.at the same time we hope the banks will not be too strict on giving out loans.