Financial institutions have a new interest ceiling. The Financial Superintendency of Colombia (SFC) announced that for June the usury rate, that is, the ceiling on the rates that banks can charge for credit cards will be 44.64% effective per year. This data represents a decrease of 77 basis points compared to last May.
Arnoldo Casas, director of portfolio solutions at Credicorp Capital, explained when the usury declines began that the intention, in principle, is to alleviate the pockets of consumers. But he stressed that the lower the usury rate, the financial entities will have a lower intention to lend.
The rate war
Although interest rates in Colombia are at their most expensive level in the century, financial institutions almost two months ago began a clear rate war to be more attractive to the eyes and pockets of people.
That is why it is striking that while the usury rate is at a high level, in reality the average of credit card loans is more than 10 points below that maximum limit.
For example, According to reports from the Financial Superintendence as of May 19, credit cards for income of up to 2 minimum wages ($2.3 million), had average interest rates of 31.34%.far from the usury rate of the fifth month that until yesterday Wednesday was at 45.41% and clearly much more distant from June (44.64%).
According to the regulator’s report, for that May 19 the highest interest rates were in the credit cards of Coltefinanciera at 40.57% (a financing company), then the banks continue to appear in this order Bbva with 39.37 %, later Yours with 39.33%; while the top five of the system is completed by Serfinanza with rates of 39.22% and Bancoomeva continues with interest rates for that cut at 38.03%.
On the side of the lowest rates in that same range of cards with up to $2.3 million, Pichincha is first with rates at 18.26%; Banco Falabella follows with 24.72%, Coopcentral with 24.75% and then one of the largest issuers: Scotiabank Colpatria with 25.90%.
wider cards
The distance between the usury rate and the cards for income greater than $2.3 million even have a difference of almost 15 points. Exactly the average of the types of these plastics closed last May 19 at 20.26%. That is to say, banks are with rates 14.28 points below the limit allowed by the regulator. “Naturally, because if we are talking about a rate war, it must be noted that credit is favorable,” added Carlos Gustavo Duarte, a financial analyst at the Sergio Arboleda University.
In this type of cards, the highest interest rates were reported in Tuya (40.57%) while the lowest were Bancolombia (20.11%) and Pichincha (20.42%).
2023-06-01 09:31:57
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