The Bank of Russia will set more stringent restrictions on lending to borrowers with a high debt burden. The regulator reduces macroprudential limits on unsecured loans and borrowings for Q3 2023 by 5 percentage points.
As explained in the Central Bank, this decision was made in order to limit the growth of debt load of citizens by discouraging lending to borrowers with a high debt load and artificially lengthening the term of loans.
Note that the macroprudential limits tool has been operational since January 1, 2023. It allows the regulator to quickly limit the risks of a possible increase in the debt burden of the population and, unlike macroprudential allowances, allows not to divert the capital of banks, which will be required in the coming years to finance the structural transformation of the economy.
Thus, from the third quarter of 2023, consumer loans with a high debt burden will be limited to a limit of 20% of the issuance of such loans. For MFIs, the macroprudential limit will be 30%. The share of consumer loans for a period of more than five years will be limited to 5%.
Source: Rosbalt
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