MANILA – The cap on bank card rate of interest will assist scale back the burden of Filipinos reeling from the affect of the COVID-19 pandemic, the Bankers Affiliation of the Philippines mentioned Friday.
Bank card coverage reform is essential particularly throughout this tough time, BAP mentioned in an announcement.
“We assist this initiative by the Bangko Sentral ng Pilipinas. This can assist ease the burden of each family together with companies affected by the pandemic,” BAP managing director Banjamin Castillo mentioned.
The Bangko Sentral ng Pilipinas on Thursday mentioned it might put a cap on rate of interest that banks have been allowed to cost for bank cards at 24 p.c every year beginning Nov. 3, equal to an rate of interest of two p.c per 30 days.
BSP Gov. Benjamin Diokno earlier mentioned excessive bank card rates of interest within the nation that goes as much as 40 p.c have been “unacceptable.”
The rate of interest cap for bank cards is unlikely to harm the earnings of banks and card issuers, the central bank mentioned.
BAP additionally lauded the BSP for its “decisive and aggressive” actions. The BSP earlier introduced the in a single day borrowing price to its all-time low of two.25 p.c.
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