Peru’s Garcia says country needs more banks

According to Garcia, more banks is what Peru needs most.
© AP
(LIP-jl) — "We need more credit lending banks in Peru so that interest rates can drop and be within the reach of the average Peruvian citizen," declared Peruvian President Alan Garcia as he publicly called for more financial institutions to open operations in the Andean nation.

The Peruvian leader acknowledged that the limited number of banking institutions, and the competition between them, makes it hard for the average Peruvian citizen to access the benefits of lending services, such as loans for new homes, businesses, and automobiles.

"To make the system accessible to all Peruvians we need more financial institutions to open operations in our country, thus creating free market competition. Some banks defend the idea of a free market system, but at the same time, they are strongly opposed to new banking companies entering the Peruvian market," sustained Garcia.

The Peruvian head of state concluded that new policies and procedures will be implemented to help new banking entities begin operations so that "all Peruvians can benefit from lower interest rates."