Regulatory Alerts2013-09-11
Added
Reductions or Additions to Interest Rates
The Bank Supervisor mandates that banks apply interest rate adjustments or additions to variable-rate loans and deposits throughout their entire duration, rather than only at inception, to prevent price opacity and ensure genuine customer benefit. This directive applies to individuals and small businesses, with variable-rate loans defined by an external, objective base rate unaffected by the bank, and extends to credit card and revolving credit facilities. The regulation supersedes previous guidelines on housing loans and credit card fees, taking effect on September 1, 2014.