More Malaysian banks cut lending, financing rates

More banks announced a cut in their lending and financing rates yesterday, following Bank Negara Malaysia's downward revision of the Overnight Policy Rate (OPR) on Monday.

Asian Finance Bank said it will reduce its base financing rate (BFR) by 25 basis points to 6.5 per cent effective December 1 2008.

It said the move is to stimulate financing growth and boost economic activity in Malaysia.

Public Bank Bhd and Public Islamic Bank Bhd, meanwhile, also said in a statement that they will reduce their base lending rate (BLR) and BFR by 25 basis points to 6.5 per cent effective next month.

"With the reduction of BLR/BFR, the full benefit of the reduction in interest rate by Bank Negara is passed on to our customers and would support the objective of Bank Negara in promoting domestic economic activities by lowering the cost of financing for consumers and businesses.

"The above revision in BLR/BFR will have marginal impact on the net interest income of the Public Bank Group, after taking into account the benefit enjoyed from the reduction in statutory reserve ratio from four per cent to 3.5 per cent," it said in a statement.