Bank and credit card stocks fell after US President Donald Trump called for a cap on credit card interest rates.
Trump said on Truth Social that credit card rates should be limited to 10% for one year starting from January 20.
Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%.
Donald Trump said.
He did not explain how the cap would be implemented or whether it would be legally enforceable.
Shares in American Express, Visa and Mastercard dropped in early trading, while Barclays fell 1.9% in London.
US banking groups warned that capping rates would reduce access to credit and harm households and small businesses.
The average US credit card interest rate currently stands at around 20%.
Trump said credit card companies would be “in violation of the law” if they failed to comply with the proposed cap.
Analysts said forcing lower rates would lead banks to cut credit limits, close higher-risk accounts and reduce rewards programmes.
Lawmakers across the political spectrum have expressed support for rate caps, though the path to legislation remains unclear.