Still, at 2%; other existing ceilings on credit cards remain

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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.

Bangko Sentral makes ceilings on credit cards remain
A screenshot of the BSP’s statement, which was released 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

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