Fin Del blog "savage capitalism? great!
"Let the system do it through regulation that will never do it willingly"
As anticipated on Thursday Página/12 block New Members Meeting presented a bill to replace the current law Financial Institutions. The initiative includes turning banking on "a public service." Entire project
Carlos Heller, one of the promoters and drafters of the project, said it aims to generate "broad consensus" that allow its passage in the House in the short or medium term. (Hopefully all FPV with Nestor at the head aporobar put their energies into this project and also the people of PSUR, SI, Hare South, the PS that a few times even seems to support socialist too)
The initiative aims to replace Financial Institutions Act in force since 1977 and was promoted by the then Minister of Economy of the military dictatorship Jose Alfredo Martinez de Hoz.
The project, which was also signed by Martin Sabbatella, Jorge Rivas, Ariel Basteiro and Vilma Ibarra (New Meeting) and Nelida Belous (Project Progressive), approaches to the financial system "from the needs of users and not the financial institutions, "said Heller. Block Party-Forging Consensus through Silvia Vázquez, also supported the initiative.
In a press conference in the Hall of Lost Steps of the lower house, the deputy said that the proposal is designed to meet the credit needs of micro enterprises and SMEs, forcing banks to allocate 40 percent of its portfolio by sector.
The text distinguishes the domestic and foreign entities, which will be those with more than 30 percent of foreign capital. For these bodies, the project incorporates "more restrictive criteria for action in the domestic financial system" and establish a concept of reciprocity with the countries of origin. "
Unlike the existing Financial Institutions Act, which has a liberal base, draft Heller has "an exhaustive list of operations for commercial banks with universal banking approach" thus leaving the concept of support " any operation that is not expressly prohibited "from current law.
Regarding interest rates, the proposal sets maximum interest rates for loans to micro and small businesses are not above "at a rate of 5 per cent on a weighted average rate for that segment financial system" and also puts the cap for those charged on personal loans of less than 100 thousand dollars.
Moreover, the bill creates the Office of Financial Service Users in the field of the Central Bank whose mission is to defend and protect the financial interests of consumers against acts of financial institutions. The text also instructs the Central Bank to implement a "Code of Conduct for Financial Institutions."
The bill that we offer consideration is based on 2 axes:
• The definition of financial activity is a public service
• Law is conceived from the needs of users and non-financial institutions
Financial activity as a public service
financial activity is a public service oriented to satisfy the transactional needs, savings and credit of all the inhabitants of the nation and contribute to its development and social economito. (Art. 1) Bill
designed from the needs of users
• Orientation of credit to micro, small and medium enterprises and regulation of lending rates
• Establishment of "Essential Services" directed toward lower-income sectors of the population with a maximum level of commissions (in some cases fees)
• Creation of User Ombudsman Financial Services in the Central Bank Scope
• Establishment of a Customer Care Department of Financial Services for each financial institution
• Definition of a Code of Conduct for entities
Objectives of the Act:
• Promoting universal access
financial services • Provide payment methods and transactional efficiency to facilitate economic activity and the needs of users
• Strengthen national savings through financial products that meet the needs of users
• Protect the savings placed in financial institutions, in particular for small and medium savers.
• Promote the general production financing, especially micro, small and medium enterprises
• Promote the provision for housing needs and consumption of individuals and family groups
• Encourage an equitable regional distribution of financial activity • Preserving stability
financial system regulations New conditions for the usual
A class weights, these legal and other regulations and requirements to establish differential for this project, the Central Bank should take into account:
• Source of capital from banks
• economic and social characteristics of the sectors and regions attended
Differentiation and foreign entities
• It incorporates a precise definition to distinguish national private equity and foreign capital. Briefly, one that has more than 30% foreign capital, or that his decision prevails in shareholders' meetings shall be considered foreign
• For financial institutions with foreign capital and representations of foreign financial institutions incorporated more stringent criteria for activity in the domestic financial system. Some of these criteria were present in previous legislation to the Law 21,526
• It gives the Executive Branch the power of authorization to operate new foreign-owned entities as well as increases in equity of financial institutions and new foreign investments in the financial system. In addition, it restores the basis of reciprocity with the countries of origin
New requirements for authorization branches
• The policy provides that the authorization of subsidiaries should be guided by the goal of expanding the geographical coverage of the financial system so as to facilitate access by users to their services and avoid excessive concentration of branches in different places, particularly in densely populated urban centers
Advertising
• It requires local authorities of foreign capital to inform the public on cases in which the majority shareholder group as a whole does not support the operations in Argentina
financial institutions operations
• Establish a specific list of operations for commercial banks with the principle of "universal banking", abandoning the previous approach of supporting any operation that is not expressly prohibited
• It provides more stringent provisions on the operation of businesses not by financial institutions. It eliminates the possibility that financial institutions owning shares of other financial institutions
Regulations
• Matching of foreign currency transactions. Foreign currency deposits should be applied mostly in operations in which the debtor has income in foreign currency
• Fees Maximum interest for loans to micro and small enterprises: the fees may not exceed a ratio of 5% to a weighted average of the financial system for that segment.
• maximum interest rate for personal loans less than $ 100,000 (idem anterior)
Democratization of Financial Services
• It instructs the Central Bank to establish a list of "essential" that the entities should provide targeted towards the sectors lower incomes, so that will set specific operational guidelines and a maximum level of commissions
• Financial institutions should spend, directly or indirectly, not less than 38% of total private sector financing to Micro, Small and Medium Enterprises (MSMEs) and 2% to micro
• It requires financial institutions to conduct an annual "Report on Contributions to the Democratization of Services", as in other countries
User Protection Financial Services
• Creates the Office of Financial Service Users in the field of the Central Bank whose mission is to defend and protecting the financial interests of users against the acts or omissions of financial institutions. The functions of the Ombudsman constituted as a second instance of claims brought by users, analysis and studies on the needs, interests and levels of user satisfaction
• Entities are required to treat and resolve complaints submit their users, so that the effect must have a User Support Department of Financial Services
• Central Bank is entrusted to implement a Code of Conduct for financial institutions
Competition
• The Central Bank should monitor the level of concentration of different surgical and corrective measures are affected competitive conditions
• No private financial institution may have a role in the overall financial system than 8% in both total deposits from the private sector, and the total of loans to the private sector
Guarantee Deposit
• The project proposes a system with a government guarantee, guaranteed by the State, which is mandatory for all financial institutions, with a limit of up to $ 100,000 per depositor or its equivalent in foreign currency and irrespective of the rate paid by deposits. The idea is to reinstate the Central Bank within the Deposit Guarantee System that was partially privatized by Law 24,485. Transferred to the Federal Government's assets "Guarantee Fund of Deposits" to administer the Central Bank. The aim is to generate a more productive from the standpoint of the depositor.
law
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