Banks slash card rates amid tight competition

Credit card companies have been lowering their rates due to tight competition. Bangko Sentral ng Pilipinas (BSP) Gov. Amando Tetangco Jr. said credit card rates have fallen significantly in recent months, particularly since January 2008. "Interest charges have been falling since 2006 or 2007," Tetangco told reporters. Card charges now range from 2.25 percent to 3 percent a month or up to 36 percent per annum, latest data from the BSP show. Tetangco said the more aggressive banks have slashed their card charges in recent months, trimming down rates further. He explained that card issuers are being forced to drop their interest charges as domestic interest rates have fallen significantly. Only a fraction of the country's working population of around four million have credit cards, according to the BSP.

in Daily Tribune by Ruben Hortelano
April 29, 2008
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