Government enforces law allowing savings banks to issue credit cards

The government watched the autograph of the law, which allowed boxes municipal savings and credit organizations issue credit cards without authorization from the Banking, Insurance and AFP (SBS).

The initiative, which also allowed the issuance of cashier’s checks and current accounts, was approved by the plenary Congress last month.

As part of this measure, it was proposed that municipal savings banks issue cards from the third year of operation and on the condition that their assets exceed 75,000 UIT.

However, the executive branch points out that the rule may create risks because the clients of these Credit cards They may be susceptible to fraud.

“In the case of CMAC, due to the shortcomings that some institutions have in their computer systems and the volume of loans they process, it will be difficult to adequately monitor loans made with credit cards,” they note.

The observation also indicates that this type operations They usually involve the use of statistical and econometric models to assess creditworthiness, so savings banks need to have adequate capacity to manage operational risk, as well as experience and in-depth knowledge of model structuring.

“The autograph of the law, proposing in its Article 6 the exclusion of CMAC from the scope of the public sector financial management provisions, violates the goal of promoting the distribution and efficient use of revenues corresponding to the human resources of the public sector and administering a registry of said revenues with transparency, legality, efficiency and effectiveness, guaranteeing financial sustainability and financial responsibility through financial human resource management,” they add in the official letter.

It is worth noting that SBS announced a few weeks ago that it would ask the executive branch to comply with this measure due to the risks it poses.