The policy-making Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has kept the maximum charge on the unpaid credit card balances unchanged at 3 percent a month.
Similarly, the monthly add-on rates that credit card issuers can charge on installment loans is kept at a maximum rate of 1 percent.
The processing fee on credit card cash advances also stays frozen at P200 per transaction and caps on credit card transactions subject to review after six months.
BSP governor Eli M. Remolona, Jr. said the decision to keep the caps on credit card transactions is a balance between providing consumers with access to credit card financing at steady rates and ensuring long-term viability of banks/credit card issuers so that they can continue to provide quality service to their clients.
Credit card receivables grew 29 percent year-on-year as of end-May this year, higher than the 17.1 percent a year ago.
This on the back of a firm demand for credit cards indicated by 34.6 percent annual growth in credit card billings, compared to the 28.5 percent growth in the previous year.
Defaulted or non-performing credit card receivables as of end-May this year stood lower at P23.4 billion versus P29.3 billion last year. The ratio of non-performing credit card receivables to credit card receivables also fell to 3.9 percent from 6.3 percent NPL ratio last year.
