Abstract for: Dynamic model of the interest rate cap in Peru
This study addresses the bill approved by the Peruvian Parliament which proposes to regulate financial interests in the Peruvian financial system by setting an interest rate cap. The effect that this regulation would bring has generated controversy in the country’s various economic and social agents, so this study analyzes the implications of this new law based on the dynamics of systems. Thus, initially, current indicators of Peru’s interest rate are presented compared with other Latin American countries, evidencing the existence of a condition of usury by financial entities in the country. Subsequently, the variables of the proposed model and the relationship among them are disclosed. Finally, a qualitative analysis is carried out in three scenarios: no regulation, partial regulation, and full regulation.