KUALA LUMPUR, Jan 19 (Bernama) -- AmBank Group and Maybank have jointly entered into the first Malaysia Overnight Rate (MYOR) interest rate swap (IRS) transaction. This is the first time that the new reference rate MYOR, which was introduced by Bank Negara Malaysia in September 2021 as an alternative to the Kuala Lumpur Interbank Offered Rate (KLIBOR), is being used for an IRS transaction.
 
The landmark transaction between both banks for a notional value of RM500 million sets a new footprint for further market development towards adopting MYOR as the preferred benchmark for Ringgit cash and derivatives market.

Globally, alternative reference rates such as MYOR have been introduced to improve the integrity of financial benchmark rates as part of a transition to transaction-based rates, arising from the London Interbank Offered Rate (LIBOR) reforms following the Global Financial Crisis. These alternative reference rates are meant to be more robust benchmark rates and based upon transactions in active and liquid markets.
 
This collaboration between Maybank and AmBank is a step towards introducing MYOR-based products to the market with the aim of providing hedging instruments that can support varying risk management strategies.
 
Jamzidi Khalid, Group Treasurer and Deputy Managing Director of Wholesale Banking, AmBank Group added that the transaction complements the on-going efforts to further develop and deepen the Malaysian financial market, in line with industry-led initiatives set out by Bank Negara Malaysia, Financial Markets Committee along with Financial Markets Association of Malaysia (FMAM).
 
“We are grateful and indeed honoured to work on this landmark MYOR IRS transaction with Maybank. This represents a major milestone in the Malaysian financial market, and we look forward to seeing further development as we move a step closer towards embracing the reform. The transaction demonstrates the Bank’s enthusiasm and commitment to deliver timely effective solutions that suits our customer’s needs and at the same time, contribute to market breath and liquidity in developing the local interest rates landscape.”
 
Md. Farid Kairi, Managing Director of Global Markets & Transaction Banking, Maybank said, “This first of its kind transaction marks a significant milestone for the development of the MYOR benchmark which is critical to enhance the robustness of interest rate benchmarks and provide clients with greater flexibility of timely and relevant financial solutions to suit their needs. We would like to thank AmBank for their partnership in this transaction and we look forward to continue to support Bank Negara’s initiatives in enhancing the MYOR market”.
 
About AmBank Group

AmBank Group is a leading financial services group with over 40 years of expertise in supporting the economic development of Malaysia. We have over three million customers and employ over 9,000 people.
 
The Group was listed on the Main Market of Bursa Malaysia in 1988. It is the sixth-largest banking group by assets in Malaysia, with a market capitalisation of around RM9 billion and assets of RM170.2 billion as at 31 March 2021.
 
AmBank Group serves over three million individual and corporate customers. It provides services in wholesale banking, business banking, retail banking, investment banking and related financial services which include Islamic banking, general insurance, life insurance, family takaful, stock and share broking, futures broking, investment advisory and management services in assets, real estate investment trust and unit trusts.
 
 
About Maybank
 
Maybank is among Asia's leading banking groups and South East Asia’s fourth largest bank by asset. The Maybank Group has an international network of over 2,600 offices in Malaysia, Singapore, Indonesia, Philippines, Cambodia, Thailand, Vietnam, Myanmar, Brunei, Laos, India, China, UK, USA, Pakistan, Saudi Arabia, Uzbekistan and Dubai. The Group offers an extensive range of products and services, which includes consumer and corporate banking, investment banking, Islamic banking, stock broking, insurance and takaful and asset management. It has over 42,000 employees worldwide. (www.maybank.com). 

Source: AmBank Group

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Syed Anuar Syed Ali
Executive Vice President, Group Corporate Communications and Marketing,
AmBank Group 
Tel: 03-2036 1703 
Email: sasa@ambankgroup.com

--BERNAMA