KUALA LUMPUR, May 2 — Bank Islam Malaysia Bhd sees more business opportunities coming to its consumer banking business with a possible cut in the overnight policy rate (OPR) by Bank Negara Malaysia (BNM).

Chief executive officer Mohd Muazzam Mohamed said any reduction in the OPR would be good for consumer spending and investment.

"BNM’s monetary policy is usually aimed at further expanding the economy. Right now in the view of the regulator, there is still scope for further growth of the country’s economy through monetary policy.

"As a bank that is oriented more towards consumer banking, when there is more consumer spending and investment, there will be more business coming to us,” he told reporters after launching a new zakat service for customers’ savings and investment.

Mohd Muazzam said any cut would have an insignificant impact on the bank’s financial performance this year.

"For any bank, any cut in the OPR will see an immediate impact on us as the financing rate will go down immediately.

"But for term deposits, the rate will be changed only when the account matures,” he explained.

Bank Islam’s consumer banking business currently represents 60 per cent of its total assets and 75 per cent of financing.

Bank Negara Malaysia is widely expected to cut the OPR by 25 basis points at the Monetary Policy Committee meeting on May 7. — Bernama