Marta Marques Silva
The granting of consumer credit for the part of firms increased 30% in the first half of the year.
For the president of the Association of Credit Institutions Specializing increased granting of consumer credit is a sign of economic recovery. Menezes Rodrigues criticized the “excessive” regulation that has been introduced in the sector in recent years and says that, ultimately, who ends up paying these costs are the consumers.
Production increased by all segments of consumer credit. How to read these numbers at a time when the recovery of the Portuguese economy is still tenuous
These numbers indicate that there is an upturn in the economy. For many blunders that governments do, societies recover. Behaviors and decisions for consumption resume a routine that has happened in the past. And therefore we see this in all aspects of consumption.
How far are we from production that existed for four or five years?
We are very far because the falls the credits in 2012/2013 were very strong. In these two years fell by 60% in consumer credit was violent.
This latest crisis was closely associated with the idea of easy credit. Differences that exist today in the approval of these credits meet the criteria that were followed in the past?
Today there are far more conservative. The refusal of consumer credit is much higher. Systems ‘scoring’ were tight, now have more filters. Companies have become more cautious. Especially because interest rates are now limited by the central bank and fell heavily. For example the rates of credit ‘revolving’ walked since 1970 at around 32% and are now 21%.
What is the impact of the scheme of maximum rates
There are products that are no longer interesting because we are talking about loans with relatively low but have a cost equal to handling high loan values. Eg with credit card rates to 20%, probably not even pay the work they give.
Earlier this year, the BoP said the rate to be applied should be subject to the time of effective use of credit and not the time of hiring of the product. At this time the average rate of credit ‘revolving’ in Portugal is higher than 23%, when the threshold is 21%. What do you think of institutions ignore understanding the bop?
I think most companies adjusted to current conditions. On the other hand the business and the contracts must have security. There are many entities that negotiate their ‘funding’ based on certain assumptions. If perhaps the counterparty, which are debtors, alter this situation, are penalized.
Go therefore wait for legislative change?
But this regulation has to take this into consideration. And attention, the customer is always able to resolve this. The client terminates the contract and make a new one.
In recent years much legislation has been created for the financial sector. What has been the impact of this legislative burden
are the costs that never end. Any change that arises is a complication, you must change the computer systems.
but also have their virtues?
There are a number of things that we think are absolutely expendable from the point of view of normal operations. Furthermore, it will be that consumers will not also pay this bill? Costs this poses to the institutions have to be passed, this is evidence.
It is argued today increased lending to the economy, business and housing, but consumer credit still has some stigma, agree?
But consumer credit is also essential for people who do not have savings in order to make an expense that is essential to your life. What about the people who have major problems in life, eg a disease, or who need money to pay for a course? This is also essential things for life. There is a demonization of credit but that I think are remnants of the middle ages.
But this demonization begins in people with major responsibilities in the country, particularly in government.
But so are political reasons, some with touches of populism. Credit decisions of anticipates the fundamental things.
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