KUALA LUMPUR: Hong Leong Bank Bhd (HLB) and Hong Leong Islamic Bank Bhd will be reducing the base rate and Islamic Base Rate to 2.88% from 3.38%, effective May 12.
Loans and financing based on the base lending rate and Islamic financing rate will also be lowered to 5.89% from 6.39%. The rates of its fixed deposits will also be revised downwards by 50 basis points.
This is a timely reduction in interest rates to help borrowers as they recover from the movement control order (MCO) and rebuild personal and business finances, the banks said in a statement.
“Beyond the rate cuts and loan deferment programmes, we’re here to provide the financial support needed to restart operations or assist with opportunities that might arise,” according to HLB.
Group managing director Domenic Fuda said the bank could help with funds needed to strengthen customers’ businesses digitally.
HLB acknowledged that the Covid-19 virus will still be around for the foreseeable future and containing it comes at the price of slowing social and economic activities.
Despite the challenges, Fuda expressed optimism that the domestic economy will adjust to this ‘new normal’ way of life under a conditional MCO period.
“Public confidence that enough progress has been made in flattening the curve and the trust that our healthcare system can cope with the outbreak, plus the support of both monetary and fiscal measures, should prove crucial in helping borrowers move from the containment to the recovery phase and to rebound quickly from the recent economic lockdown,” he said. – May 7, 2020, Bernama
