Banks Consider Responses to Trump’s Credit Card Rate Cap Proposal
bank of America adn Citigroup are examining potential responses to President Donald Trump’s call for a one-year cap on credit card interest rates at 10%. The proposal faces implementation challenges and is unlikely to significantly impact bank profits, according to industry analysts.
Saul Martinez, Head of US Financials Research at HSBC, stated that implementing a 10% cap would likely require new legislation. He indicated the cap wouldn’t substantially alter bank profitability in the short term. Martinez discussed these points on Bloomberg Markets with Scarlet Fu. Bloomberg has more on this developing story.
The White House has not yet detailed how it intends to pursue the rate cap, leaving banks to assess potential compliance strategies. Further details are expected as the administration clarifies its position.
