On June 10,  the Central Bank issued a statement warning of “excessive” financing rates charged by financial technology companies. It said “77% of fintech loans (…) involve charging their customers a Total Financial Cost (CFT) of over a minimum of 150% per annum, while more than half the fintechs charge a CFT which is above 400% per annum.”

Meanwhile, the Bank said that these companies use different criteria to report financing costs, some based on nominal annual or monthly interest rates while others are expressed in nominal terms instead of effective ones.

The Central Bank’s analysis was based on the monitoring of 46 separate fintech companies.