Municipal Savings Banks are already authorized to issue credit cards

He Congress of the republicafter approving it by insistence, promulgated the Law No. 31711, which strengthens the municipal savings and credit banks (CMAC) to promote competition for the benefit of consumers. The purpose of the rule is to enable the entry of multilateral organizations to strengthen the assets of these entities and promote financial inclusion in the country.

The law, published this Thursday 16 in El Peruano, modifies article 4 of Supreme Decree 157-90-EF, which defines the operation in the country of municipal savings and credit banks. ANDAmong the changes it introduces is that multilateral organizations and private investment funds may enter the CMACs as temporary third-party shareholders, with the right to vote and a participation equal to or less than 49%, different aspects in the case of municipalities.

According to the Peruvian Federation of Municipal Savings and Credit Banks, this provision will allow these institutions to guarantee their sustainability over time, since they will be able to count on partners such as the World Bank or the Inter-American Development Bank.

Likewise, article 286 of the General Law of the Financial System and the Insurance and Organic System of the Superintendence of Banking and Insurance is amended, which among other provisions now it allows CMACs to receive demand deposits, grant overdrafts or advances in checking accounts, issue cashier’s checks, and issue and manage credit or debit cards.

This way, from the third year of operation, entities that maintain assets greater than 75,000 Tax Units (UIT) (S/371 million 250,000) may carry out directly and without prior authorization from the Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS) the aforementioned operations. In case their assets are less than the aforementioned amount, they will need the approval of the SBS.