Several experts point out that the threat from the Portuguese Banking Association is a sign of concertation between the institutions and could lead to an investigation by the Competition Authority.
The threat from the Portuguese Banking Association (APB) that banks may end fixed and mixed interest rates on property loans is being criticized and may even violate competition law.
The controversy arose in the context of discussions on the proposed State Budget for 2025, with the PS and Chega presenting proposals that defined the reduction or elimination of commissions charged for early credit repayments. In retaliation, banks threatened to stop offering fixed or mixed rates on mortgage loans.
Abel Mateus, former president of the Competition Authority (AdC), warns of signs of anti-competitive practices, as the APB statement can be interpreted as a concertation between banks.
“By speaking on behalf of the banks, the association is implicitly taking collective action among them to reach a concertation. There is evidence for the Competition Authority (AdC) start an investigation”, he declares to .
The expert also recalls that recently, 11 banks were condemned for anti-competitive concerted practices. “What I think is serious and different here is that the Portuguese Banking Association is acting and threatening on behalf of the banks.” “So how can it be? I mean, Ithis is a cartel“, he emphasizes.
Faced with this possibility, Vítor Bento, president of APB, guarantees that the panel “does not decree anything” and that each bank “acts for itself, according to its individual strategies”. “What the APB warned was that, with the proposed measure, granting credit at a fixed rate becomes more risky for banks, so it is likely that the increase in risk will be reflected in the price conditions of new operations, thus ending up being unfavorable and possibly uninteresting for consumers”, he tells CNN Portugal.
DECO Proteste also accused APB of “political blackmail”, arguing that the elimination of commissions promoted dynamism in the marketencouraging credit transfers and benefiting consumers.
On the other hand, representatives of the main banks, including BCP, Caixa Geral de Depósitos and BPI, criticized the proposals to reduce commissions, classifying them as “irrational” and damaging to confidence in the sector. APB argued that the commissions compensate for the risks assumed by banks in long-term contracts, especially in fixed-rate schemes.
