Regulatory Alerts2024-10-06
Added · Updated
DFIM Circular No. 05: Interest/Profit Rate of Deposit and Loan/Lease/Investment
The Department of Financial Institutions and Markets withdraws the market-based interest rate system and the reference rate system, requiring finance companies to determine interest and profit rates based on loan demand and fund supply. Finance companies must publish sector-specific rates on their websites, allow up to a 1% variation based on risk, and prohibit charging interest outside market rates or imposing undisclosed service charges. The circular also sets specific rules for variable rates, late payment penalties, and Islamic finance profit determination, while repealing several previous circulars and taking immediate effect.