Clipping of news on Brazilian Culture, Law and Citizenship
10.27.2015
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Check rate totaled 263.7% per year in September, the largest since 1995.
Credit card interest is highest in the series, which begins in March 2011.
The average interest rate charged by banks on operations with overdraft reached in September, the highest level in 20 years, while the average rate charged by financial institutions in revolving credit card surpassed the mark of 410% per year, according to Figures released by the Central Bank on Tuesday (27).
Credit (Photo: Rede Globo)
Card interest exceed 410% per year (Photo: Rede Globo)
In the case of overdraft, according to the monetary authority, the interest charged in September amounted to 263.7% per year, which represents an increase of 10.5 percentage points from the previous month, when they were 253.2% per year. It is the highest level since September 1995, when they were 271.4% per year, again according to Central Bank data.
The interest charged by the banks in this line of credit had a strong increase in recent months. At the end of 2013 were 148.1% per year. The growth, however, was 115 percentage points over the last 19 months. This year alone, the increase was 62.7 percentage points, according to the monetary authority.
credit card
Already the average interest rate charged by banks on operations with revolving credit card, the most expensive mode of market, rebounded in September and reached the mark of 414.3% per year, the Central Bank. The level is the highest since the start of the series, in March 2011. The Central Bank has recommended that bank customers to avoid this facility.
Along with the overdraft, the interest on the revolving credit cards are the most expensive market. The recommendation of economists is that bank customers to pay all its card bill at maturity, leaving no outstanding balance, and avoid also use the overdraft.
Rise in basic interest rates
The increase in bank interest attached to the high base rate of the economy, set by the Central Bank every 45 days to try to contain inflationary pressures.
The rate rose between October last year and September this year - moving from 11% to 14.25% per annum, up 3.25 percentage points. The figures show that banks have raised their interest rates to the consumer in a more intense way.
Report recently published by the American newspaper "The New York Times" says that the interest charged on some credit facilities in Brazil "would an American moneylender feel ashamed," citing the credit cards.
According to a survey done by Economatica to BBC Brazil, despite the economic downturn, the return on assets of large banks traded in Brazil was 18.23% in 2014 - more than double the profitability of US banks (7 , 68%).
Payroll, personal loans and vehicles
In the case of personal loans to individuals (excluding payroll), according to the Central Bank, the average rate charged by banks amounted to 118.3% a year in September, compared to 119.9% a year in August. In this case, there was a drop of 1.6 percentage points.
Also according to the Central Bank, the average rate of interest charged by financial institutions in the payroll loan operations (Discount payroll) amounted to 27.6% annually in September - which represents a decline of 0.2 percentage points compared to August (27.8% pa).
According to the BC, the average interest rate for the purchase of vehicles by individuals, in turn, amounted to 25.6% per year in September, against 24.8% annually in August this year. In this case, there was an increase of 0.8 percentage points.
Source: G1
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This article was translated by an automatic translation system, and was therefore not reviewed by people.