Banks will deliver study on card revolving interest, says Haddad

The Minister of Finance, Fernando Haddad, said on Monday night (17) that the banks will deliver a schedule of studies to the government and the Central Bank (BC) on the causes of high interest rates on credit card revolving credit cards. This afternoon, he met with representatives of financial institutions to discuss a solution for the rates of this modality, which are at 417.4% a year, according to the Central Bank.

According to Haddad, the first meeting, which lasted about an hour, served only to outline a diagnosis of the sector, informed Agência Brasil. The minister promised to present a study soon and the BC’s involvement in the discussions.

“We had four or five bank CEOs here, not just Febraban [Federação Brasileira de Bancos]. We are going to involve the Central Bank in the discussions. They will deliver a presentation schedule of a study [para os juros do rotativo]. I asked for speed, they asked to involve the BC because it has the regulation of the product”, said Haddad after the meeting.

The president of Febraban, Isaac Sidney, and former federal deputy Rodrigo Maia, president of the National Confederation of Financial Institutions (CNF), were present at the meeting. They were accompanied by presidents of four banks: Octavio de Lazari (Bradesco), Milton Maluhy (Itaú-Unibanco), Mario Leão (Santander Brasil) and Cristina Junqueira (Nubank).

According to Haddad, the discussion is not simple because the credit card industry has many actors involved: “there are many interlocutors: flag, vending machines, banks and retailers”.

President of Febraban announces working group on rotary

The president of Febraban, Isaac Sidney, said that the entity is willing to build, with the federal government and the BC, solutions to reduce interest on credit card revolving credit cards. He also said that a working group will be set up, with no deadline for completing the analysis.

“It is important that we attack not only the causes of the high bank spread, but also understand the causes of the high cost of credit. This is not the time to point out ways or discuss proposals. The paths need to be discussed after a correct diagnosis”, said the president of Febraban.

Earlier, Haddad had stated that the government intends to release, this week, 14 measures to stimulate the credit market in Brazil. With the forecast that the working group will only start activities in the next few days, a measure for credit card revolving should be left for later.

According to Sidney, one of the suggestions to be presented by financial institutions will be a new legal framework for guarantees (goods and assets that cover possible defaults), whose project is being discussed in the National Congress. “One of the reasons for high bank interest rates is the low effectiveness of guarantees. If the country has the Legal Framework of Guarantees, we will take an important step to reduce the cost of credit”, declared the president of the entity.