Price drops for credit card issuers follow President Donald Trump's remarks on the social network Truth Social on Friday about a 10 percent cap on credit card interest rates starting January 20.
The 10 percent cap can be compared with the average credit card interest rate of 21 percent at the turn of the year, according to statistics from the US Federal Reserve (Fed).
Several trade associations representing the banking sector warn that Trump's interest rate cap would reduce the supply of credit, which would be "devastating for millions of American families and small businesses that rely on their credit cards," Bloomberg reports.
According to industry critics, households with weaker credit ratings would find it difficult to obtain credit and may lose access to credit they have today. Industry groups also warn that lenders will be pressured to raise various fees to cover reduced interest income.
