usury rate, that is, the maximum allowed that is charged to clients of the financial system, marked its minimum of the last 11 years in October 2021 with 25.62% and since then, and in line with the increase in the interests of the Bank of the Republic, has behaved in a similar way and has risen steadily and in fact for April it stands at 28.58%.
(See: Credit to mipymes would have a guarantee of up to 90%).
This reveals an increase of almost 300 basis points (bps), or three percentage points.
For Edgar Jimenez, Professor of Finance at the Jorge Tadeo Lozano University, the Issuer’s rate increases have been transmitted relatively quickly to the credits.
“Since November we have had six months of increases in the credits that Colombians take. That increase of 300 bps so quickly is a bit surprising, although it was already being discounted in the deposit market with CDTs, which have better rates every time”, affirms the academic.
(See: The Agrarian Bank ventures into mortgage credit).
Regarding the usury rate for April, Jiménez says that the purchases made in the month with credit cards will very surely appear in the statements of several banks with rates around 28.58%, while in October 2021 they were around the sides of 25.62% or somewhat lower.
For Alejandro Reyes, from BBVA, “the rise in interest rates has been from 1.75% to 5%, that is 325 bps, in the same period where inflation has risen almost 500 bps”.
The interest rates faced by consumers in the financial system have been rising more or less at the same rate as those of Issuer, he says.
(See: ABC of the project that seeks to end the so-called ‘drop by drop’ credit).
In addition, it emphasizes that it has been seen that the interest rates of the public debt market, which is the one with which the banks are funded, had been rising for a long time and says that the credit rates are favorable, which is still motivating the taking of credit, “This is why we believe that the Issuer has to take this interest rate above what is normal so that the economy contains a little excess spending.”.
MORE THAN NORMAL
Sergio Olarte, Chief Economist of Scotiabank Colpatria assures that the transmission of rates from the issuer to the credit has been “faster than normal”.
He agrees that “with a cycle in which growth continues with inertia, it is easier for monetary policy decisions to be transmitted quickly.
“In the deposit market (rates) have risen significantly, especially CDTs and large deposits. The rate has been growing significantly, especially short-term commercial and mortgage and vehicle, partially, I would say half”, he assures.
It has been partially passed on to the usury rate and it is expected that this will continue to rise, along with that of the Bank of the Republic that this month it would rise 100 basis points again.
(See: In 2021, credits in the country increased 42%).
For Juan David Ballén, director of Economic Research at Casa de Bolsa, it is expected that the issuer increases rates to levels of 7.50%, 250 bps against the current level.
HOW IT IS CALCULATED AND CERTIFIED
The usury rate is the maximum of the remunerative or default interest that an entity can charge, and is constructed as 1.5 times the current bank interest.
The remuneration is the agreed return for a credit in a period and the moratorium is compensation for the delay according to the agreed term.
The Superfinanciera calculates and certifies the current banking interest for consumption and ordinary, microcredits and low amount consumption with the data of the credit establishments.
BRIEFCASE
