The Bank of Mexico said Monday it was implementing a series of changes effective Oct. 26 that would make the calculation of the annual percentage rate (APR) on loans more exact and clear, spurring greater competition in lending.
The objective is to "specify, clarify and simplify the methodology for calculating" the APR on loans, as well as the factors that financial companies use in determining and disclosing the total cost of loans, the central bank said in a statement.
Among the rules being implemented is one that requires lenders on automobile loans to include the cost of mandatory collision insurance . . .
