Base Rate Ganti Base Lending Rate


1. Bank Negara Malaysia (BNM) akan menggunakan benchmark financing yang baru, menggantikan BLR. Berkuatkuasa 2 Januari 2015.

Boleh baca juga dari laporan The Star: BNM: More transparent Base Rate to replace BLR

2. Pada masa yang sama, ada framework baru untuk Islamic deposit, yang mana ia memberi kesan langsung kepada bottom line perbankan Islam.

Kalian boleh membacanya di bawah. Dari CIMB Investment.

Guidelines on new reference rate and Islamic deposits

NEUTRAL – Maintained
Author(s): Winson NG, CFA +60 (3) 2261 9071,

Today, Bank Negara Malaysia (BNM) made announcements on: (1) new reference rate (RR) framework, and (2) Islamic deposits which provide greater clarity on the previous proposals. BNM confirmed that the new RR framework will not alter the lending rate and hence, this will be neutral for banks’ margins and earnings. But the reclassification of some Islamic deposits to investment accounts would be negative for banks’ margins, though the impact is unquantifiable at the moment. We remain Neutral on the sector, given the concerns over slower loan growth and continuous margin contraction. RHB Capital is still our top Malaysian bank pick.

What Happened

Today, Bank Negara Malaysia (BNM) made announcements on: (1) a new reference rate (RR) framework; and (2) the Transition Policy under the Islamic Financial Services Act 2013 (IFSA) (please refer to pages 2 and 3 for details). These give greater clarity on the previous proposals.

What We Think

The details of the new reference rate framework were largely in line with our expectations. We had highlighted the concept paper for the new RR framework in our report dated 19 Jan 14. However, BNM provided the following new information: (1) it will be implemented starting from 2 Jan 15; and (2) it will not have an impact on effective lending rates. As stated in our previous report, our view is that the lending rate will be largely stable under the new framework, unless there is intervention by BNM. As such, this will be neutral for banks’ margins and earnings. The second announcement is on the policies under IFSA, with BNM providing new information on a two-year transition period until 30 Jun 15. This involves the reclassification of some of the Islamic deposits into investment accounts, based on customer preference. The implementation of the above will be negative for banks as we understand that Islamic banks earn a narrower spread from investment accounts compared to Islamic deposits. We (as well as the banks) are not able to quantify the impact of this change as the percentage of Islamic deposits to be converted into investment accounts is still uncertain at this juncture.

What You Should Do

We advise investors not to increase their holdings in banks given the concerns over slower loan growth and margin compression, even if asset quality is expected to remain stable. The implementation the new reference rate framework will be neutral for banks, but the guideline for Islamic deposits will negatively impact banks’ margins.

About the author: Saya merupakan konsultan kewangan dan membantu pemilik bisnes + profesional untuk membuat cashflow analysis, assets & liabilities management dan exit plan.

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