MANILA – The Bangko Sentral ng Pilipinas stated Thursday it’s capping the rate of interest that banks are allowed to cost for bank cards at 24 p.c each year beginning Nov. 3.
This interprets to an rate of interest of two p.c per 30 days. Different fees in the meantime might be restricted to a processing payment of P200 per transaction. The charges might be reviewable each 6 months, the BSP stated.
The BSP stated the cap ought to guarantee bank card customers of inexpensive pricing.
The measure can be in keeping with the present low rate of interest surroundings following the BSP’s aggressive easing of financial coverage to encourage borrowing and financial exercise.
“Primarily based on our knowledge, the common annualized rate of interest on bank card receivables ranged from 18 p.c to 58 p.c from January to June 2020. Primarily based naman sa bank card enterprise report, the common annualized rate of interest for every type of bank card holders, each premium and non-premium was 26 p.c,” stated Veronica Bayangos, Director of the BSP’s Supervisory Coverage and Analysis Division.
Final month BSP Governor Benjamin Diokno stated that the excessive bank card rates of interest within the nation had been “unacceptable.”
Bank card charges can enhance relying on the reimbursement habits of the person. Delinquent customers are sometimes charged the next fee, to encourage immediate funds and keep away from the build-up of very bad credit card debt.
“We are confident banks will comply and will observe such a limit. Because before we issued this policy, we coordinated with our counterparts with BAP, and they supported this policy. We also coordinated this policy approach with the credit card association of the Philippines,” Bayangos added.
The BSP stated the rate of interest cap is just not anticipated to harm the revenue of banks and bank card issuers.
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