Base Rate & Base Financing Rate


What is Base Rate (BR)?

Base Rate (BR) is in accordance to the new reference rate framework introduced by Bank Negara Malaysia and it replaces the Base Lending Rate (BLR) as the pricing for retail loans effective 2nd January 2015. Under this new framework, banks will use funding costs and the Statutory Reserve Requirement (SRR) cost imposed by Bank Negara Malaysia as its benchmark to quote their base rate. MBSB Bank's BR is computed based on its average cost of funds plus the SRR cost.

Effective 1 July 2018, MBSB Bank Berhad’s BR and BFR will be increased, as follows:

Rate Types Current Rates (p.a) New Rates (p.a)
Base Rate (BR) 4.02% 4.15%
Base Financing Rate (BFR) 6.85% 7.00%

Note: MBSB Bank will be using the BR for pricing new retail floating rate financing facilities including refinancing while the existing floating rate retail financing pegged against BFR shall continue to price against BFR until maturity.

What would trigger a change in the Base Rate?

The BR will be adjusted when there are changes in monetary policy eg Overnight Policy Rate (OPR) and/or changes in the benchmark cost of fund i.e. average deposit rate.

Historical benchmark Cost Of Fund (COF) in the last 3 years