Banks reduce interest rates on credit-card transactions

The Bangko Sentral ng Pilipinas said banks had reduced interest rates on credit card transaction owing to stiff competition and low interest-rate environment.

BSP’s recent survey showed that in the aftermath of different product promotions, banks have lowered interest rates to a range of 2.25 percent to 3 percent a month from 3.5 percent.

BSP Deputy Governor Nestor Espenilla Jr. told reporters that “promotions such as balance transfer [have reducted] interest payments” such that they have encouraged competition in the industry.

“We’re beginning to see reduction in over-all rates in a range of 2.25 percent to 3 percent. Before, most were in 3 percent,” Espenilla said.

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