Central Bank weighs higher capital requirement for credit cards - Valor International

The Central Bank is considering raising the capital requirement applied to credit card exposures, according to Valor International. In practice, that would mean banks must hold more loss-absorbing capital against card lending, a change that affects how lenders price risk and allocate balance sheet capacity.

The rationale behind such a move is prudential: credit card portfolios are unsecured, revolving, and historically prone to higher loss rates than secured lending, particularly when household budgets tighten. Raising the capital charge would make that risk more explicitly costly for issuers, rather than leaving it to be managed mainly through interest rates, fees, and limits.

For markets, the key question is whether the measure remains under study or advances into a formal proposal. If it does, watch for details on the calibration, the timeline for implementation, and whether any transition period is offered. Those specifics will determine how much the change affects card economics, and whether lenders respond by repricing credit, tightening underwriting standards, or shifting capital toward other products.