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Description Effective 01 August 2022
Standardised Base Rate (SBR) for Conventional & Islamic.

2.25% p.a.

Base Rate (BR) (Conventional & Islamic).

3.25% p.a.

Base Lending Rate (BLR)/ Base Financing Rate (BFR). 6.10% p.a.

Historical Published SBR/BR/BLR/BFR series since January 2015  

 

Date  SBR* BR BLR/BFR 
Aug 2022 2.25%  3.25% 6.10%
Jul 2022 2.25%  3.25% 6.10%
May 2022 2.00%  3.00% 5.85%
Jul 2020 1.75%  2.75% 5.60%
May 2020 2.00%  3.00% 5.85%
Mar 2020 2.50%  3.50% 6.35%
Jan 2020 2.75%  3.75% 6.60%
May 2019 3.00%  4.00% 6.85%
Dec 2018 3.25% 4.25% 7.10%
Feb 2018 3.25%  4.15% 7.00%
Jan 2018  3.25%  3.90%

6.75%

Jul 2016 3.00%  3.90% 6.75%
Jun 2016 3.25% 4.10% 6.95%
Jan 2015  3.25% 4.00%  6.85%

*SBR is effective from 1 August 2022. The historical rates prior to 1 August 2022 refer to OPR, which is the benchmark rate of the SBR.

 

What is Standardised Base Rate (SBR)?

 

Effective 1 August 2022,  SBR is the reference rate that all banks will use in the pricing of new retail floating-rate loans/financing, refinancing of existing retail floating-rate loans/financing, and the renewal of revolving retail floating-rate loans/financing. Retail loans/financing refer to loans/financing granted to individuals (not SMEs or businesses), while ‘floating-rate loans/financing’ refer to loans/financing where the interest/profit rate can change during the lifetime of the loan/financing. The SBR is linked solely to the Overnight Policy Rate (OPR), as determined by the Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM).

 

Why is SBR being introduced?

 

In line with BNM’s announcement on 11 August 2021,  SBR will be the same across all banks, unlike the Base Rate (BR) which is different for each bank. With the BR, changes to the BR are driven by factors that vary across banks. The SBR makes it simple and easy for you  to understand and compare floating-rate loans/financing across banks, and allows you  to make  an informed decision when deciding which bank to take a new retail loan/financing from.

 

What is Base Rate (BR)?

 

The BR is made up of two parts, our benchmark cost of funds (BCOF) and the Statutory Reserve Requirements (SRR) cost imposed by BNM. Our BCOF reflects the cost of funding for floating-rate facilities/financing and mainly comprises of customer deposits and other floating-rate funding raised by the bank to fund these facilities/financing.

 

What are the possible scenarios to trigger a change in BR?

 

Changes in the BR will occur due to changes in the OPR as decided by the MPC of BNM. Changes in BR will move in tandem with changes in the SBR.

 

 

Source :  BNM Consumer Guide on the Revised Reference Rate Framework

                 BNM Website page on OPR decision 

 

 

Please read  FAQ on  SBR for better understanding

Please read FAQ on revision in BR/BLR/BFR for better understanding