According to a statement from the banking regulator SBS, the Peruvian congress has approved a law that allows non-bank entities to perform factoring operations, issue debit cards, offer consultancy services and conduct foreign trade related operations.
The new law will apply to municipal credit unions, rural savings and loans offices as well as other non-bank financial institutions.
"The expansion of financial services offered by non-banking companies will have positive effects, in particular on micro-, small- and medium-sized enterprises, because these clients demand more sophisticated products than just direct loans," the SBS report said.
At the same time, the reforms will result in tighter competition in micro financing, which should improve the products that are offered as well as lowering costs to the borrower, the report added.
Source: BNamericas.com
