Paraguay
The Senate reviews a new request to the BCP over the IPS loan payment mechanism
The upper chamber will debate a request for the Central Bank and the Superintendency of Banks to report whether there is any restriction on crediting those disbursements to accounts chosen by beneficiaries. The initiative also seeks to learn about any background of inquiries, complaints and possible observations regarding the system used.
The Senate will take up this Wednesday from 9:00 a new request for information to the Central Bank of Paraguay and the Superintendency of Banks about the way in which the loans granted by the Social Security Institute to its beneficiaries are channeled, according to ABC Color.
According to that outlet, the initiative was promoted by Senator Lilian Samaniego and constitutes a second request on the matter. Last week, a similar proposal had already been approved at the request of Senator Rafael Filizzola.
One of the focus areas of the inquiry is whether there is any legal, regulatory, operational or technical provision that prevents the IPS from directly depositing the loan money into accounts that borrowers have at any authorized financial institution and that were chosen by them.
The request also seeks for the BCP to detail what mechanisms exist in the Paraguay Payments System to make mass credits or transfers to accounts at different financial institutions and whether they have the capacity to process between 1,800 and 2,000 monthly disbursements, ABC Color reported.
In addition, the request asks whether, from the standpoint of banking regulation and financial consumer protection, it is admissible for the collection of a loan granted by a non-financial institution to be tied to the opening of an account at a specific bank.
According to ABC Color, the Senate also seeks to know what the rules are on consent, customer information, account contracting and the financial user’s freedom of choice when an account is opened mainly to receive funds from a third party.
Another point in the request aims to determine whether, from 2020 to the present, the BCP or the Superintendency of Banks received inquiries, communications, complaints, reports or requests for opinions linked to this disbursement mechanism. The inquiry expressly mentions IPS, Visión Banco, Ueno Bank and other people or entities that may have raised the issue.
Finally, it asks whether there were any evaluations, inspections, observations or recommendations on the use of a specific financial institution to channel IPS loans, as well as on the opening of accounts associated with those disbursements.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this event.
