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Contributor
/// Banking and Investment News
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BANKING &
INVESTMENT
NEWS
The banking and investment industry has a crucial role
to play when it comes to property. Read about the most
recent news and trends in this trade
Bank Proposes Banks to Introduce Prime
Financing Rate
rate framework for the
industry to price retail
loans. The briefing was
chaired by governor Zeti
Akhtar Aziz.
Bank Negara Malaysia
(BNM) has proposed
that banks introduce
a prime financing rate
(PFR) to replace the base
lending rate (BLR) as the
reference for pricing
retail loans, bankers said.
BNM briefed senior
bankers on its proposal
for a new reference
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“It was proposed that
a PFR - set by the
respective banks replace the BLR for the
pricing of all retail loans,”
said a retail banker
who spoke to The
Edge Financial Daily on
condition of anonymity.
This suggest that banks
will quote their lending
rates as “PFR plus (a
spread)”, rather than
the current practice of
www.PropertyHunter.com.my
Will 2014 Be Kind to Investors in
Industrial Real Estate?
“BLR minus (a spread)”,
he said.
The PFR of each bank
would be calculated
based on the benchmark
cost of funds plus
the statutory reserve
requirement (SRR), he
said. The spread will
reflect the bank’s profit
margin, operating costs
and credit risk, among
other things.
A report by Business Monitor
International on real estate in
Malaysia for the first quarter
of 2014 says that slowly but
surely, industrial real estate
is growing in its portfolio of
investments. It is the way
to go, in terms of property
investment in Malaysia.
The recent announcement
on the National Automotive
Policy (NAP) 2014 promoting
Malaysia as a single
production base and
marketing hub for energy
efficient vehicles (EEV) is
also likely to see industrial
production expand and
improve. This will obviously
have a positive impact on the
industrial property sector.