Antonina Levashenko, head of the International Best Practices Analysis Department at the Gaidar Institute, explained why despite growth in certain lending segments the overall debt burden on households remains under control.
Despite an increase in auto loans, the growth rate of consumer lending in Russia remains modest. As Antonina Levashenko noted, the situation is influenced simultaneously by easing financial conditions and the Bank of Russia’s ongoing tightening of requirements for borrowers.
According to the expert, the growth in auto loans may be linked to the gradual reduction in the key rate, which has made borrowing costs more affordable for citizens. However, the regulator’s measures aimed at limiting the riskiest forms of lending are preventing an overall increase in the debt burden.
“The reduction in the key rate has made loans more accessible to some borrowers, which has supported demand for auto loans. However, the Bank of Russia is simultaneously tightening requirements for assessing citizens’ ability to repay and restricting the issuance of the riskiest loans, primarily mortgages for borrowers with high debt burdens. As a result, lending growth remains moderate, and the level of household indebtedness is not showing a sharp increase,” said Antonina Levashenko.