KUALA LUMPUR, May 8 (Bernama) — Bank Islam Malaysia Berhad (“Bank Islam”) is revising its Base Rate (“BR”) by 50 basis points from 3.27% to 2.77% per annum, while Base Financing Rate (“BFR”) is revised from 6.22% to 5.72% per annum. Similarly, deposit rates will also be adjusted downwards by 50 basis points. All rate changes will take effect from 12 May 2020. The decision is in response to Bank Negara Malaysia’s (“BNM”) move to slash the Overnight Policy Rate (“OPR”) by 50 basis points from 2.50% to 2.00%.
Bank Islam’s Chief Executive Officer, Mohd Muazzam Mohamed said, “Bank Islam will be strategising to balance our funding portfolio to be more cost-effective as this will certainly help to mitigate our net income margin (“NIM”) compression. While the cut will no doubt affect our financial income, it is done with our customers in mind. The Bank will continue to help society back on their feet during this difficult time and we will keep on supporting the economy to normalise.”