President of the BC questions the sustainability of the interest-free credit card installment model; bank wants to limit revolving debt
The president of the BC (Central Bank), Roberto Campos Neto, questioned this Tuesday (Dec 5, 2023) whether the current consumption model of the Brazilian population, based on interest-free installment payments, is sustainable for the future of the Brazilian economy. country.
In an interview organized by the Jota website, Campos Neto pointed out some distortions of this system. He said that, for store owners to be able to offer consumers interest-free installments, it is necessary to receive advance payment from suppliers.
On the other hand, companies make this advance from fees passed on to the end consumers themselves. “If you look at the fees charged for advance payments, they are higher than the card issuer’s risk rate”he said.
“If the credit that expands the most is interest-free installments, to the detriment of interest-bearing installments, we are left wondering: is this the healthy growth that we want to have from now on?”, declared.
For him, the discussion about limiting credit card rotation does not aim to harm consumption in Brazil.
“We never said we would do anything that would disrupt consumption, on the contrary, our concern is to look ahead and say: look, is this the best system for tomorrow?” It may be for today, but is it for tomorrow?” he said.
Since August, the BC president has been talking about the possibility of ending credit card revolving as a solution to default and high interest rates.
Therefore, the institution has discussed with other financial organizations about the Desenrola law, which limits revolving debt.
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