BCRP in favor of municipal savings banks issuing credit cards

The central manager of Economic Studies of the Central Reserve Bank (BCRP), Adrián Armas, was in favor of municipal savings banks being able to issue credit cards provided they have the technical characteristics to provide the service.

“What we can comment on is that in general the position of the Central Bank in the past on similar projects has been that it welcomes competition, the opportunity for other financial entities such as savings banks to have the opportunity to provide these services,” he said.

However, he highlighted the importance of the role of the SBS in supervising that these financial entities “have all the technical elements to provide these services in an adequate manner”. If the conditions are verified, “this function could precisely be given to financial entities,” he commented.

“Let us remember that each financial entity, according to the functions they have to perform, the regulator has to guarantee the well-being of society, that the services are provided in an adequate manner with all the operational risk protection features that this requires,” he concluded. Weapons.

Municipal banks could issue credit cards

The BCRP’s pronouncement comes after the Consumer Defense Commission of the Congress of the Republic approved the prediction of the bill that modifies article 256 of the General Law of the financial system and the insurance system.

The initiative seeks that municipal savings banks can grant financial products such as receiving demand deposits, overdrafts, checking account advances, issuing cashiers checks and issuing credit cards.