Asian Finance Bank Bhd (AFB) will raise its base financing rate to 5.75 per cent, from the current 5.5 per cent, effective March 9.

Asian Finance Bank Bhd (AFB) will raise its base financing rate to 5.75 per cent, from the current 5.5 per cent, effective March 9.

Its Chief Executive Officer, Datuk Mohamed Azahari Kamil, said the increase was in line with the 25 basis points hike in overnight policy rate to 2.25 per cent.

Demand for financing would not be dampened as the economic recovery was firmly established as shown in the latest Gross Domestic Product (GDP) figures, he said in a statement on Monday.

He also said Bank Negara's move should be seen as part of a "normalisation" process and not as a "tightening" cycle.

"AFB was committed to offer financing to good rated customers and financing approved by the bank, todate, had surpassed RM1 billion.

"We are more selective now as we are entering the second phase of the bank's assets growth," he added.