Saturday 18 September 2021

Regulator Proposes Limitations on Bank Loans

Paying the bills

Latest

What are we celebrating?

QCOSTARICA - From the gallows humor department is the...

Sala IV rejects covid patient’s claim for Caja to pay the cost of a private hospital

QCOSTARICA - A claim made by a family against...

Finally, migrant population in Costa Rica will be vaccinated against covid-19

QCOSTARICA - After complaints raised by migrants because they...

Costa Rica is the Main Exporter of Palm Oil in 2020

QCOSTARICA - In 2020, Costa Rica was the largest...

Uruguay considers allowing tourists to buy marijuana

Q24N - The first country in the world to...

Today’s Vehicle Restriction September 18: “ODD” ending plates CANNOT circulate

QCOSTARICA - Starting today, September 18, we go back...

500 Intel drones illuminated the night of celebration of the Bicentennial of Costa Rica

QCOSTARICA - During the celebration of the Bicentennial of...
Paying the bills

Share

Q COSTA RICA – The General Superintendency of Financial Institutions (SUGEF) is proposing banks have additional capital requirements to discourage consumer and vehicle loans, and mortgages with excessive repayment terms.

The aim is avoid the excesses of indebtedness through too long term loans

Over the years, financial institutions in Costa Rica have been setting longer terms on loans with the objective of reducing the monthly payment.

- Advertisement -

The SUGEF argues that terms of over 30 years for housing loans and more than 5 in consumer loans, ie credit cards  and 7 years on car loans, encourages overindebtedness of Costa Ricans. The practice also places the bank at risk.

The change would require banks, for new loans, to increase their capital by 20% in the case of consumer loans approved for a period of more than five years and 15% for vehicle loans over a period of seven years; and an additional 10% in the case of mortgages for more than 30 years.

The initiative of the SUGEF is causing concern among bankers, as they foresee a reduction in access to credit for middle-class families.

Ronulfo Jiménez, Economic Advisor of the Costa Rican Banking Association (ABC), accepted that the reform of the Superintendency seeks to avoid the excesses of indebtedness of the people. However, he believes that increasing contributions (capital requirement), based on the share ratio, is highly detrimental because it reduces the access of middle-class families to housing loans.

In order for the regulation to go into force, it must be approved by the National Council for the Supervision of the Financial System (CONASSIF).

- Advertisement -
Paying the bills
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

With the dollar rising, should I transfer my loan or my savings from the currency?

QCOSTARICA - The change in the exchange rate of the dollar...

BAC layoffs 373, closing 11 branches and 79,789 credit card accounts

(QCOSTARICA) BAC Credomatic announced this Thursday, July 2, the layoff of...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.