Financial Superintendence of Colombia convenes interest rate risk event as officials warn high financing costs are restricting investment

The Financial Superintendence of Colombia held an event on interest rates, risk management and their social function, focused on interest rate risk in the banking book faced by financial intermediaries. In opening remarks, Financial Superintendent César Ferrari warned that financing costs in Colombia have risen substantially as a result of tight monetary policy, with lending rates still in double digits and continuing to weigh on household and business financing, investment and economic growth. Ferrari said the weighted average lending rate stood at 16.7 percent at end-March 2026, down from 24.6 percent in 2023 but still restrictive, while the weighted average rate on certificates of deposit was 11 percent versus 13.05 percent in March 2023. Separately, SFC Deputy Delegate for Risks Guillermo Sinisterra said loan rates are around 300 basis points above the 2025 average, with weighted rates of about 16.31 percent for commercial loans, 18.02 percent for consumer credit, 3.65 percent for productive credit and 13.19 percent for housing. He also noted that microcredit, although only 3 percent of the system's total loan book, has grown 11.3 percent in recent months, above housing at 5.96 percent, consumer at 3.39 percent and commercial at 2.19 percent, and said pass-through from the policy rate to bank lending rates is not immediate because lenders need time to adjust funding costs and new loan pricing.