Push Admin

Bangko Sentral keeps credit card interest rate ceiling at 2 percent per month

Article (news)

ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A close-up image showing a Mastercard credit card on a computer keyboard in Frankfurt, Germany, Sept. 10, 2016. Mauritz Antin, EPA-EFE/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/overseas/05/31/card.jpg"/><figcaption>A close-up image showing a Mastercard credit card on a computer keyboard in Frankfurt, Germany, Sept. 10, 2016. <em>Mauritz Antin, EPA-EFE/File</em></figcaption></figure></div><p>MANILA - The Bangko Sentral ng Pilipinas on Tuesday said it has decided to keep the existing ceiling on credit card transaction fees and monthly interest rates.</p><p>In a statement, the central bank said it would keep the current ceiling on charges and interest rate based on the existing Circular No. 1098.</p><p>Under the circular, the maximum interest rate or finance charge on the unpaid outstanding credit card balance is at 2 percent per month or 24 percent per year. </p><p>Maximum add-on rate on credit card installment loans is set at 1 percent while the maximum processing fee on availment of credit card cash advances is P200 per transaction, the BSP said. </p><p>&quot;The reasonableness of the ceilings shall be subject to further review in January 2023,&quot; it said.</p><p>&quot;The BSP will continue to closely monitor evolving domestic and external developments that will impact the state of credit card financing, sustainability of credit card operations and viability of banks/credit card issuers​,&quot; it added.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/31/22/bsp-keeps-2-pct-cap-on-credit-card-monthly-interest">BSP keeps 2 percent ceiling on credit card monthly interest rate</a></li></ul><p>Central bank data showed that bank lending, which includes credit card debt, rose 13.4 percent in September as revenge spending kicked in. </p><p>Several banks have reported the rise in credit card use and the utilization of credit for luxury goods aside from basic essentials.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/31/22/bank-lending-up-134-pct-in-sept-bsp">Bank lending grows 13.4 percent in September, defies higher rates</a></li>	<li><a href="https://news.abs-cbn.com/business/10/17/22/bad-loans-decline-even-as-credit-card-use-rises-bsp">Bad loans declining even as credit card use rises says Bangko Sentral</a></li>	<li><a href="https://news.abs-cbn.com/blogs/business/07/04/22/5-facts-consumers-need-to-know-about-their-credit-card">Five facts every consumer needs to know about their credit card</a></li></ul><p>Prior to setting a ceiling on credit card fees and charges, former BSP Gov. Benjamin Diokno said the rates in the country would be adjusted to become at par with its peers. </p><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2341814" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The Bangko Sentral ng Pilipinas on Tuesday said it has decided to keep the existing ceiling on credit card transaction fees and monthly interest rates.