Money

Banks back credit card interest rate cap

The Bankers Association of the Philippines (BAP) has thrown support behind the move to set a cap on the maximum interest rate for credit card transactions.

The BSP set the ceilingn at 2% a month or 24% per annum.

For credit card loans or installments, credit card issuers may only charge monthly add-on rates of a maximum of 1%.

The maximum rates, which are subject to review every six months, will take effect on Nov. 3.

“We support this initiative by the Bangko Sentral ng Pilipinas. This will help ease the burden of every household including businesses severely affected by the pandemic,” BAP managing director Benjamin Castillo said in a statement.

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