Hong Leong Bank and Hong Leong Islamic Bank Replace Base Rate with Standardised Base Rate for New Retail Floating-rate Loans/Financing
Hong Leong Bank and Hong Leong Islamic Bank Replace Base Rate with Standardised Base Rate for New Retail Floating-rate Loans/Financing
Kuala Lumpur, 28 July 2022: Hong Leong Bank and Hong Leong Islamic Bank (“HLB” or the “Bank”) will be using the Standardised Base Rate (“SBR”) in the pricing of new retail floating-rate loans/financing, refinancing of existing retail loans/financing, and the renewal of revolving retail loans/financing from 1 August 2022, following Bank Negara Malaysia’s (“BNM”) revised Reference Rate Framework announced on 11 August 2021.
The SBR only applies to loans/financing for individuals. Non-individual loans/financing will continue to be offered using BLR/IFR as the pricing reference rate. The SBR is linked directly to the Overnight Policy Rate (OPR), as determined by the Monetary Policy Committee (“MPC”) of BNM.
“With SBR used as a common reference rate by all financial institutions, it will promote transparency and ease of comparison in helping to improve customers’ understanding of financial terms. Further, the new Reference Rate Framework will improve the transmission of monetary policy decisions to end users of retail lending/financing floating-rate products,” said Domenic Fuda, Group Managing Director and Chief Executive Officer of HLB.
For more information on the SBR, please visit:
https://www.hlb.com.my/content/dam/hlb/my/docs/pdf/Help-and-Support/mortgage-loan-info-centre/hlb-mortgage-standardised-base-rate-frequently-asked-questions.pdf