Febraban criticizes new payroll loan ceiling and says that measure may reduce credit supply

[ad_1]

The National Social Security Council approved a reduction in the maximum interest rate charged on payroll loans to INSS beneficiaries. Minister says decision was agreed with Treasury and public banks. Chamber approves project to fine financial institution that makes payroll without authorization The Brazilian Federation of Banks (Febraban) criticized this Thursday (17) the decision of the National Social Security Council (CNPS) to reduce the maximum interest rate charged on payroll loans for INSS retirees and pensioners. The reduction in the interest ceiling was approved this Thursday by the CNPS. The rate limit will change from 1.97% per month to 1.91% in the case of the conventional payroll loan, with payroll deduction. The only negative vote was given by the representative of the National Confederation of Financial Institutions (CNF), of which Febraban is a member. In the assessment of the entity, the new level may not cover the “current costs for part of the banks that operate this credit line”. “Initiatives such as these generate relevant distortions in the prices of financial products, producing effects contrary to what is desired, insofar as they tend to restrict the supply of cheaper credit, impacting economic activity, especially consumption,” he says in a note. A similar complaint was made by banks in March, when the same council decided to reduce the conventional payroll interest ceiling for INSS beneficiaries from 2.14% to 1.70%, which generated an impasse. At the time, Banco do Brasil, Caixa Econômica Federal and other private banks temporarily suspended the offer of this credit. The institutions stated that the fees would not cover the costs of the operation. The CNPS then approved a “middle ground”, and the ceiling was set at 1.97%. Questioned by TV Globo if this Thursday’s decision had been previously agreed with the banks, the Minister of Social Security, Carlos Lupi, said that the issue was agreed with the Ministry of Finance and with Banco do Brasil and Caixa Econômica Federal. “The agreement I have to make is with the public banks, which is my competence, to talk, to dialogue”, he declared. In a note, Banco do Brasil said that the current rate practiced by the bank is already in line with the new established level by the CNPS.Febraban informed that each financial institution, in light of its business strategy, should assess the “convenience of granting payroll loans to INSS beneficiaries under the new interest ceiling set by the Pension Council”.

[ad_2]

Source link