SERGEY ZUBOV: “PARTIAL MOBILIZATION FORCED THE BANKS TO RECONSIDER THEIR SYSTEM OF CLIENTS’ ASSESSMENT”
The “Profile’ weekly magazine published the opinion of Sergey Zubov, Senior researcher of the Financial Studies Department of the Gaidar Institute, on the impacts of partial mobilization on the lending and real estate markets.
According to the publication, partial mobilization announced in Russia on 21 September had an immediate impact on the real estate market. Demand for both new construction and secondary housing has fallen, and many have abandoned planned deals and approved mortgages. Banks and insurers raise interest rates because of increased risks, and potential buyers have taken a wait-and-see attitude. Experts cautiously hope for a market recovery. Moreover, attempting to reduce risk, banks have tightened requirements for borrowers potentially subject to partial mobilization. The lender can limit the amount or ask for a co-borrower or guarantor, and this also happens with regard to already approved applications.
Thus, banks seek to compensate for the benefits for participants of special military operation, Sergey Zubov believes. He explained that partial mobilization and obligations imposed by the regulator with regard to loan holidays, incentives and compensation for those mobilized are forcing banks to review their customer assessment system, thereby reducing the number of loans issued. "Potential demand for mortgages is still high, but effective demand began declining almost immediately after the mobilization was announced due to the increased demand for cash, food products and household appliances," the expert explained.
Thus, banks seek to compensate for the benefits for participants of special military operation, Sergey Zubov believes. He explained that partial mobilization and obligations imposed by the regulator with regard to loan holidays, incentives and compensation for those mobilized are forcing banks to review their customer assessment system, thereby reducing the number of loans issued. "Potential demand for mortgages is still high, but effective demand began declining almost immediately after the mobilization was announced due to the increased demand for cash, food products and household appliances," the expert explained.