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New Peru central bank measure raises rate ceiling for fintechs

Banco Central de Reserva del Perú has changed the way it sets the maximum interest rates that can be charged by non-financial entities, including financial technology firms, El Comercio reported.

Under the new measure, the maximum rate will be based off of the average rates on loans to both small enterprises and consumers. Previously, such rates relied solely on small-business loan rates.

The move effectively raises the ceiling on the rates to account for the additional risk these companies assume when they lend to certain clients, such as those without an established credit history, according to the report.

Analysts told El Comercio that the rule change was positive for fintechs as it helps put the sector on a more equal footing with traditional lenders.

"It allows them to transfer the risk they assume in a more profitable way," EY Peru partner Ljubica Vodanovic said in an interview with the Lima-based publication.