The Financial Superintendence of Colombia published remarks by Superintendent César Ferrari from a forum on the usury rate cap and access to credit, linking consumer credit outcomes to interest-rate levels and market structure. He argued that lower interest rates are associated with more credit in the market and a stronger economic response, while the usury rate cap can constrain lending where providers face higher costs. Ferrari said the usury rate cap makes it difficult for higher-cost institutions to charge higher interest rates to potential clients and urged a shift toward a more competitive market, anchored in transparent pricing, free entry and exit of market participants, and information symmetry. He also highlighted an SFC-developed tool that allows people to compare the costs of savings and credit products to support better financial decisions, and said he aims for the usury rate cap to become irrelevant as the policy debate shifts toward competition.
Superintendencia Financiera de Colombia 2025-03-11
Financial Superintendence of Colombia’s head argues for competition-led credit access over reliance on the usury-rate cap
The Financial Superintendence of Colombia shared Superintendent César Ferrari's remarks on the usury rate cap and credit access, emphasizing that lower interest rates enhance market credit and economic response. Ferrari advocated for a competitive market with transparent pricing and information symmetry, suggesting the usury rate cap limits lending by higher-cost institutions. He introduced an SFC tool for comparing savings and credit product costs to aid decision-making.