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.
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.
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.
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.
"The reasonableness of the ceilings shall be subject to further review in January 2023," it said.
"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," it added.
Central bank data showed that bank lending, which includes credit card debt, rose 13.4 percent in September as revenge spending kicked in.
Several banks have reported the rise in credit card use and the utilization of credit for luxury goods aside from basic essentials.
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.