The Bangko Sentral ng Pilipinas (BSP) Monetary Board has determined to set the existing ceilings on credit cards previously prescribed under Circular No. 1098 dated Sep. 24, 2020, the BSP press release stated on Nov. 15, 2022.
The maximum interest rate or finance charge on the unpaid outstanding credit card balance shall remain at 2% monthly or 24% in a year. Meanwhile, the maximum monthly add-on rate on credit card installment loans is nailed at 1%, and the maximum processing fee on credit card cash advances is capped at Php200 in each transaction.
Ceilings on credit cards to revisit
“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,” the BSP said in a statement.
The Monetary Board’s decision of maintaining the ceilings on credit cards is subject to a revisit in January 2023. RQJ
Since 2011, Regel Javines has been writing online, sharing news and analysis on a range of noteworthy and urgent social issues. He completed his bachelor’s degree in office administration at the Polytechnic University of the Philippines (PUP)—Taguig Campus, where he also served as editor-in-chief of the official school newspaper. See Regel’s published articles here.