7/25/2019 A New Based Rate

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A NEW BASED RATE:

A number of FSPs proposed for the BR to include liquid asset ratio (LAR), liquidity riskpremium and oerhead costs!

"he Bank holds the ie# that the cost of mana$in$ liquidity risk and oerheadcosts should be reflected in a spread aboe the BR #hich is fi%ed throu$hout thefinancin$ tenure!

"he ne# Reference Rate Frame#ork is also consistent #ith the policy documenton Risk&'nformed Pricin$ #hich requires FSPs to determine the fundin$ costfactors (i!e! LAR and liquidity risk premium), credit risks and operatin$ costs in thepricin$ of retail loansfinancin$ facilities #hich #ould be included in the spreadaboe the BR!

7/25/2019 A New Based Rate

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P*RA"'+AL S"-

Staff costRental.eneral / Administration (utilities, adertisement cost etc!ut sourcin$ cost

7/25/2019 A New Based Rate

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