Finance
Colombia financial regulator may take steps to curb credit limits
BOGOTA, Aug 17 (Reuters) – Colombia’s monetary regulator mentioned on Wednesday it might take measures to counteract ballooning shopper credit score limits and sort out rising family debt as rates of interest and inflation climb.
The quantity of credit score out there on bank cards has shot as much as 96 trillion pesos, some $22.7 billion, from simply 62 trillion pesos earlier than the coronavirus pandemic, figures from the Superintendency of Finance present.
The measure would ask banks to be liable for prime credit score limits which go unused by customers, hitting their backside traces.
“Monetary entities might do good administration when it comes to controlling the expansion price of shopper debt,” mentioned the regulator’s superintendent Jorge Castano on the sidelines of a banking convention in Cartagena.
“The portion of cash households or debtors are utilizing to pay their money owed is starting to develop and if we add the impact of inflation clearly there might be a better stress on fee capability,” Castano added.
The measure will go into impact relying on quarterly outcomes for banks within the fourth quarter, he mentioned.
Castano additionally flagged as regarding longer mortgage phrases, that are climbing above eight years at the same time as funds are deteriorating.
Shopper credit score has grown because the financial system has rebounded and is close to 22%, a lot larger than the same old common of 8% or 9%, he mentioned.
“Historical past tells us that when there may be progress in shopper credit score it is pure {that a} portion of that debt begins to deteriorate,” he mentioned.
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Reporting by Nelson Bocanegra
Writing by Julia Symmes Cobb
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