The Bank of Russia will increase for banks, the risk weights on consumer credits issued after September 1, 2018. So, the Central Bank wants to avoid a growing debt load of the population, given the increase in the unsecured loan
The Bank also plans to limit the growth of unsecured consumer lending, revising the scale of risk coefficients for consumer loans depending on the values of the total cost of credit (PSK). This is stated in the message controller. Such changes are proposed in the instruction of Bank of Russia 180-I “On mandatory ratios of banks”.
The requirements of the Central Bank aimed at banks, which will have to create by lending a greater amount of reserves, taking into account possible losses. So, for loans with a value of UCS in the range of 10-15% earlier, the risk ratio had to cover 100% of the cost of the loan, and now is 130%. Will also increase the risk factors for the UCS with a value of 15-20% — with 110% to 150%; with a value of 20-25% from 120% to 180% and with a value of 25-30% — risk ratio is proposed to increase from 140% to 200%. New requirements for assessing risks of consumer loans will be extended to all banks universal and basic license for loans granted after September 1, 2018.
To increase the odds of the Central Bank went to in order to, on the one hand, to ensure the quality growth of the loan portfolios of banks, and with another — not to increase the debt load of the population and thus to increase the stability of the financial system as a whole, explains the regulator.
According to the Central Bank on June 1, 2018, the debt on unsecured loans over 12 months increased by 15.7%. While the average monthly growth rate of the population debt to banks for March–may 2018, with the elimination of seasonality account for 17.8 percent, and this trend continues.
Lending activity the largest retail banks ahead of their stated in the beginning of the year forecasts on increase of credit portfolios, which will lead to higher growth rates of credit portfolio of the banking sector by 2018, says the report of the Central Bank. The growth of credit debt in excess of the income growth (their growth in January–may 2018 compared with the same period last year is 5%), increases the debt burden of the population and the accumulation of risks in the banking system.
CB had previously noted his concern about the growth of consumer loans. “The high growth rate of unsecured consumer loans begin to be a little uncomfortable,” — said in April, the Chairman of the Central Bank Vasily Pozdyshev. He noted that the pace of loan portfolio growth may exceed the growth rate of the economy. And in February, the head of the Ministry Maxim Oreshkin said that the growth of unsecured consumer lending is an obstacle to further reduction of the key rate of the Central Bank.