Banks rise on overdrafts and credit card interest rates in November | Economy

• The average interest on the revolving credit card for individuals increased from 275.7% pa in October to 279.8% pa in November. However, in the part of the year, the rate decreased by 52.3 percentage points. At the end of 2017, interest on the card was 332.1% per annum.
• The average rate of overdraft according to the institution, increased by 300.4% annually in 305.7% per annum in November. In the cumulative index of the first eleven months, however, interest declined by 17.3 percentage points to reach 323% per annum at the end of 2017.

These rates are still high compared to Other countries and other lines of credit offered. the banks. Economists recommend that bank clients not use these terms or, if necessary, use them for a very limited period of time.

Interest Rate of Revolving Credit Card for Individuals

Percentage Per Year

Source: Central Bank

The increase in rates of these lines of credit comes in a scenario of stability of the basic rate of the economy, the Selic, which is currently at a historic low of 6.50% per annum. This stability has been observed since March. Previously, the rate had dropped 12 times in a row.

The high level of interest rates practiced by banks, which slow down consumption and hinder investment in the Brazilian economy, is one of the problems that the next President of the Republic has to face. to face.

Data from British Columbia show that the country's four largest banking conglomerates held 78% of all credit transactions by the country's financial institutions at the end of 2017.

The year last, the government announced measures to reduce interest on the revolving credit card. The federation representing the country's banks has announced new rules for the use of overdrafts, which came into effect in July this year.

Lower average bank interest rates

Despite rising interest rates on overdrafts and revolving credit cards, British Columbia figures show declining 39 average interest of open-source establishments (excluding BNDES, rural credit and real estate). ) in November.

• the average total rate (individual and enterprise) increased from 38% per annum in October to 37.9% per annum in November; during the year, it decreased by 2.4 percentage points, which was 40.3% per annum at the end of 2017.
• Interest on transactions with individuals increased from 51 , 9% per year in October to 51.6%. % per year in November; in the accumulated year, the rate decreased by 3.4 percentage points. It was 55% per year at the end of last year;
• the rate applied to enterprises remained stable and increased from 20.4% per annum in October to 20.3% per annum in November; and in part of the year, it dropped by 1.3 percentage points (21.6% per annum at the end of 2017).

Even with the decline in average interest rates of all operations of financial institutions, the "bank spread" "(The difference between what banks pay for their resources and what they charge their customers ) increased in November.

In the case of transactions with individuals and businesses, the gap went from 29.6 percentage points in October to 29.9 in November. went from 43 points in October to 43.2 points in November.This is a high standard for international standards.