{"id":320894,"date":"2023-01-17T11:20:00","date_gmt":"2023-01-17T03:20:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=320894"},"modified":"2023-01-17T12:24:40","modified_gmt":"2023-01-17T04:24:40","slug":"credit-card-monthly-interest-rate-ceiling","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/credit-card-monthly-interest-rate-ceiling\/","title":{"rendered":"BSP approves to raise credit card monthly interest rate cap from 2% to 3%"},"content":{"rendered":"\n<p>The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), approved last Friday, January 13, to raise the monthly interest rate ceiling on credit cards to three percent (3%) from two percent (2%).<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>The BSP circular has been signed and is now awaiting approval for an official press release. The circular will take effect 15 days after its publication. The increase to a 3%-cap would bring in annual rate to 36%, higher than the 24% that cardholders has been paying since November 2020. This is at par with its average pre-pandemic. Credit cards were the main driver of consumer loans during the first 9 months of last year; therefore, this should be accretive for the whole banking sector. <\/p>\n\n\n\n<p>However, we expect this to benefit those banks that have larger emphasis on retail segments such as SECB (Target Price: P140.00) and UBP (Target Price: P88.00) and high exposure to credit card revenues such as MBT (Target Price: P62.00).<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-320894","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/320894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=320894"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/320894\/revisions"}],"predecessor-version":[{"id":320896,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/320894\/revisions\/320896"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=320894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=320894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=320894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}