Lawmakers from Costa Rica’s ruling Citizen Action Party (PAC) in the country’s Legislative Assembly questioned representatives from Costa Rica’s controversial women’s-only bank, Banca Kristal, a subsidiary of the State-owned Banco de Costa Rica (BCR), about the bank’s marketing and business practices on Wednesday.

Critics of the “pink and chic” Banca Kristal have complained since the bank’s opening in December that the banks are sexist and reinforce negative stereotypes about women, with some comparing their “Barbie-themed” appearance to that of hair salons more so than bank branches.

During its launch, the women’s-only bank said that it would offer special products not available to other BCR customers, including specialized credit cards, loan products, and savings plans, all with “preferential rates,” special savings and credit products related to health and education, and other banking products targeted towards women.

Shortly after its launch, however the bank introduced one of its flagship products – the Kristal credit card, which critics were quick to point out most certainly did not provide a “preferential rate.”

At a whopping 36 percent APR, the card carries an interest rate far above even BCR’s highest interest card, the “Pura Vida” card, which is aimed at lower income customers and carries an interest rate of 29.5 percent.

The less-than-competitive interest rate came despite the fact that bank management said that female customers have a lower delinquency rate and better savings rate than their male counterparts as part of its justification for the new female-only bank.

Despite the less than favorable interest rate, Banca Kristal said in January the bank issued 6,220 credit cards with a combined credit line of US $1.9 million in December, the bank’s first month of operation. The bank also processed 4,940 loan applications and placed more than US $3 million in loans during its first month, bank officials said, and opened nearly 10,000 checking and savings accounts.

While questioning Banca Kristal chief Guisella Flores on Wednesday during a working session of the Legislative Assembly’s Commission on Women, Rep. Epsy Campbell (PAC) and Rep. Emilia Molina (PAC) argued that the bank’s advertising and marketing reinforce negative stereotypes against women that the country has fought to eliminate in public schools and universities over many years.

The lawmakers also called into question the bank’s less-than-competitive interest rates on financial products, and the reasoning behind BCR’s decision to invest in the costly venture. Banca Kristal said in November of last year that it plans to open 20 additional branches in 2016 at a cost of US $8 million, in addition to the $15 million it spent in developing the brand and launching its first five branches in December.

Flores, for her part, said that the Banca Kristal concept was launched after “market studies” determined that a demand existed for a bank catering exclusively to women.

As the subsidiary of a State-owned bank, Banca Kristal is subject to legislative oversight.