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A new table of credit card interest rates, recently created by the Central Bank, is causing quite a stir in the world of finance.
Prepared as part of measures to regulate the financial market and protect consumers, the table promises greater transparency in the charging of interest, an issue that has always been a cause for complaint among credit card users.
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How does the Central Bank’s table work?
The new system created by the Central Bank takes the form of a queue for each institution, where all credit card bills are ordered from the lowest to the highest interest rate.
The queue is subdivided into four groups, showing the highest rate in each group. These groups represent 25%, 50%, 75%, and 99% of the queue, with the intention of providing a complete overview of the interest rates charged. See:
Which institutions have the highest rates?
Analyzing the information provided by the new table:
- Banco BMG has the highest interest rate in the market, recording a rate of 28.77% per month;
- BV and CSF also have high rates, at 24.97% and 24.14%, respectively;
- In the first group (25%), Realize has the highest rate, at 16.97% per month.
By paying attention to these rates, it is possible to understand the competitive landscape in which financial institutions operate.
The impact on the market
This new method of organization promises to attract the attention of the market and experts, who are eager to understand the effects of the new law on interest rates.
New to the market, the table does not yet provide a complete overview, showing only the current situation. Over time, the effects of changes in the benchmark interest rate, the Selic, and other variables may be measured.
Finally, the measure aims to provide consumers with greater transparency when choosing a particular credit card, as well as foster fairer competition among financial institutions. Over time, more practical effects of this implementation should be felt by the economy and Brazilian consumers.
