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Tasa Máxima Convencional y Oferta de Créditos

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  • Rodrigo Alfaro
  • Andrés Sagner
  • Camilo Vio

Abstract

The discussion about the Interest Rate Ceiling (TMC) has generated several proposals that involve changing the current way of calculating this interest rate, which applies to consumer loans of amounts smaller than 200 UF and maturities of less than 90 days. In this paper we analyze the effect of a change in the weighting factor of the current formula, focusing primarily in the reduction of the credit supply. For this purpose, we assume that interest rates can be characterized by a log-normal distribution. Our results show an important sensitivity of the credit supply to changes in the weighting factor. In fact, by reducing the weighting factor from its current value (1.5) to values below 1.3, the credit supply would be strongly reduced in case the distribution of risk has a high dispersion.

Suggested Citation

  • Rodrigo Alfaro & Andrés Sagner & Camilo Vio, 2012. "Tasa Máxima Convencional y Oferta de Créditos," Working Papers Central Bank of Chile 673, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:673
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    1. Rodrigo Alfaro A. & David Pacheco L. & Andrés Sagner T, 2011. "Dinámica de la Tasa de Incumplimiento de Créditos de Consumo en Cuotas," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 14(2), pages 119-124, August.
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