Bankers, business groups support proposed cap on credit card interest rates


Posted at Aug 25 2020 02:35 PM

MANILA - Business and industry groups said Tuesday they were "supportive" of the Bangko Sentral ng Pilipinas' proposal to put a cap on credit card interest rates.

The Bankers Association of the Philippines and the Credit Card Association of the Philippines, in a joint statement, said they support the proposal of the BSP.

“We welcome this initiative of the BSP and hope that this collective effort of the banking industry will help ease the burden of our credit cardholders during these challenging times,” BAP president Cezar Consing said.

In a separate statement, the Management Association of the Philippines said the proposed cap, coupled with the 60-day loan reprieve under Bayanihan 2 will offer "relief" to credit card users who were hit by the pandemic.
“The BSP Governor’s proposal, coupled with the 60-day payment deferment under the Bayanihan to Recover as One Act, will provide big relief to businesses and individuals using credit cards, many of whom have found themselves jobless as a result of the pandemic," MAP president Francis Lim said.

Bayanihan to Recover as One, the country's proposed second coronavirus response law has a provision granting a 60-day loan moratorium to help cushion the impact of COVID-19. 

The measure was recently ratified by Congress and is currently up for President Rodrigo Duterte's approval. 

Bangko Sentral Governor Benjamin Diokno earlier said, the BSP was eyeing to put a cap on interest charges of credit cards, similar to the practice of other countries.

In the Philippines, credit card interest rates "go up to 40 percent, which to me is unacceptable," Diokno earlier said.