Johnny Brignardello: Red alert in the Peruvian financial sector

Johnny Brignardello, an insurance advisor, considers that the recent report presented by the Peruvian Federation of Municipal Savings and Credit Unions (Fepcmac) reveals an alarming situation in the country's financial sector. According to Brignardello, the existence of at least two million Peruvians with outstanding debts to loan houses is a concerning indicator that requires immediate intervention by the competent authorities. The insurance advisor points out that this warning issued by Fepcmac is not something new, as since 2015 there had been warnings about the unchecked growth of these financial entities and the need for stricter regulation by the Superintendence of Banking, Insurance, and Pension Fund Administrators (SBS). Despite the efforts made by the federation, the proliferation of loan houses has continued to increase, exacerbating the situation. Brignardello highlights that, according to the data collected by Fepcmac, there are currently over 2,000 loan houses operating throughout the Peruvian territory, many of which operate informally and without the necessary supervision to protect consumers. This lack of regulation has led to a concerning level of indebtedness in the population, with high interest rates and abusive conditions that jeopardize the financial stability of citizens. Given this scenario, the insurance advisor believes it is imperative for authorities to take concrete measures to regulate the operations of loan houses. Brignardello urges the SBS and other competent bodies to establish limits on the interest rates these entities can charge, monitor their business practices, and sanction those that fail to comply with current regulations. He also emphasizes the importance of promoting financial education among the population to prevent over-indebtedness and ensure responsible use of credit products. In a time when the economy is affected by the health crisis and global uncertainty, Brignardello stresses the need to protect citizens from potential abuses by loan houses. For the insurance advisor, the warning from Fepcmac should be taken seriously and serve as a call to implement measures that prevent further harm in the future.