KUALA LUMPUR (July 15): Alliance Bank Malaysia Bhd is cutting its base rate, base lending rate (BLR), and base financing rate (BFR) by 25 basis points effective today.

The base rate will be reduced to 2.57% from 2.82%, while its BLR and BFR will be lowered to 5.42% from 5.67%.

The revision applies to all existing loans and/or financing pegged to the base rate, BLR, and BFR, said the bank in a statement today.

“To align with these changes, the deposit rates will also be revised on the same effective date,” it added.

The cuts are in line with Bank Negara Malaysia’s (BNM) reduction of the overnight policy rate by 25bps to a historic low of 1.75% on July 7.

Alliance Bank said since March, it had provided its customers help to mitigate the impact of the pandemic, such as a break in loan repayments, loan restructuring and rescheduling, as well as BNM Special Assistance Funds to SMEs.

“We are currently engaging our customers to offer payment relief assistance post-moratorium that is most suited to their needs,” said its chief executive officer Joel Kornreich.

He added that due to the onset of Covid-19, customers now prefer remote interactions, and the bank is responding by making it more convenient for them to perform their transactions anywhere and anytime.

Alliance Bank said it is poised to be the first bank in Malaysia to roll out an eKYC(Electronic Know-Your-Customer) solution that will allow fully digital opening of a savings account, and application for a credit card or personal loan, without having to visit a bank branch or see a bank officer.

As at 9.55am, shares in the bank were up 1 sen or 0.46% to RM2.20, valuing it at RM3.39 billion.