A Congressional leader strongly opposes proposals for the Bangko Sentral ng Pilipinas (BSP) to adjust the current credit card interest rate caps of two percent per month. BSP Governor Felipe Medalla recently announced efforts to review the credit card interest ceilings given higher BSP policy rates.
Albay Rep. Joey Sarte Salceda, chair of the House Committee on Ways and Means, said the proposal will ”just go to pad bank profits.” “Why we would want to adjust 27 percent per-annum interest rates upward as if that’s not high enough is beyond me.”
He said his committee will review any move by the BSP to raise credit card interest rate caps invoking monetary policy.
“Monetary policy is the sphere of the Committee on Ways and Means, based on our mandate. While we respect the independence of the Central Bank to make decisions, those decisions are not free from Congressional accountability,” Salceda said.
According to him, “the BSP Charter mentions reporting to Congress at least 14 times, including a quarterly report explaining the decisions it makes. We’ll assert that congressional function if needed. I urge the BSP to be more circumspect about this decision on credit card interest rate caps.”
Salceda cited that, based on disclosures to the Philippine Stock Exchange, the largest banks in the country have become significantly more profitable compared to last year’s numbers.
“The biggest banks in the country have increased profits by 12 to 72 percent. Higher credit card interest rates will merely boost those profits while hurting the middle class,” he added. Maricel V. Cruz
 to adjust the current credit card interest rate caps of two percent per month. BSP Governor Felipe Medalla recently announced efforts to review the credit card interest ceilings given higher BSP policy rates.){kind=link}