Banks resume offering INSS payroll after new ceiling – 03/28/2023 – Market

A few hours after the CNPS (National Social Security Council) set the ceiling for payroll interest for INSS (National Social Security Institute) retirees at 1.97% per month, large banks announced that they would once again offer this type of credit. .

Caixa, Santander, Bradesco and Banco do Brasil reported that they will resume the modality immediately or as soon as the new norm comes out in the Official Gazette. Itaú said it was still evaluating the resumption of the offer.

The banks had suspended the offer after the CNPS approved on the last day 13 a ceiling of 1.70% for the monthly interest of the modality. The sector’s assessment was that the ceiling was insufficient to adequately remunerate the banks.

“Bradesco informs that the INSS payroll-deductible credit line is back to operating normally as of tomorrow, the 29th”, the bank said in a statement. According to the press office, Bradesco will operate with the rate defined by the government.

“Banco do Brasil informs that it will immediately return to operate the INSS payroll-deductible credit line, following the definitions disclosed by the CNPS”, informed the bank. “BB understands that the new rules reconcile the adequate remuneration of the line with the offer of credit consistent with the financial needs of its customers”, added the bank.

Caixa already informed that the resumption of the offer will be made immediately after the publication of the normative instruction in the Official Gazette of the Union. “Caixa reinforces its commitment to position itself among the best market rates, resuming concessions with an average rate of 1.87% per month, below the recommended ceiling.”

Santander will also offer the credit modality again from this Wednesday (29).

Banco Pan, in turn, reported that, as of the formalization of the new interest rate ceiling by the INSS, it is expected to resume the offer of payroll loans to INSS beneficiaries from next Thursday (30).

Despite the stance of quickly resuming lending, banks disagreed with the new rate proposal at their meeting this Tuesday.

“The banks, represented by Febraban, participated this Tuesday in the meeting of the Social Security Council and, initially, disagreed with the proposal for a ceiling on payroll interest for INSS beneficiaries at 1.97%, as it is a level still below the current costs for part of the banks that operate this line of credit”, informed Febraban in a note.

However, the federation of banks said that, as the proposal represents an important advance in relation to the previous ceiling of 1.70%, the banks, “contributing to end the impasse and in the face of impacts on the granting of this financing line that will still be evaluated, decided to abstain from the vote.”

If a retiree who receives a minimum wage from the INSS (today, R$ 1,302) borrows R$ 1,000 on payroll at 1.97% per month, for example, he will pay 84 installments of R$ 24.45. At the previous rate of 1.70%, each installment in this example would be R$22.45. The calculations were made by Anefac (National Association of Executives), at the request of the Sheet.