Credit Cards: Why Superfinanciera Will Tighten the High Quotas It Offers


If banks want to continue to lend to people, they will have to pay a higher price for it through credit cards. The financial superintendent, Jorge Castano Gutierrez gave a warning during his speech at the 56th Banking Conference.

Castano expressed his concern about the high level of unused quotas on credit cards held by Colombians. Those quotas went from 62 to 100 billion pesos, which could hit both people and financial institutions.

For this reason, Castano said card-issuing entities will have to make more provisions on quotas that are assigned to cardholders in the future.

Although the financial system’s past payable portfolio is currently at low and controlled levels, changes in economic conditions could cause this portfolio to grow at a rate of 14 percent or more.

Apart from reaching higher levels of quota, there is also a fact that banks are giving more long tenure loans for free investment, between 8 to 10 years, while new credit sources are deteriorating rapidly.

“It is not that we are not looking for flow of credit, just that we want it to be done in a sustainable manner,” the official said, explaining that the problem is not card quotas, but excess indebtedness. Families can have access to those higher credit card quotas.

Today the financial burden of households has started to increase, i.e. the share of income that families allocate to pay their debts, is increasing and if the effect of inflation is added to this, there will be more pressure on the paying capacity of the households. Will happen. ,

Before the pandemic, that share averaged 26 percent and today it is closer to 33 percent, which is why Observer launches these alerts more as a prevention of non-payment of financial obligations on the part of people.

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