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A group of deputies and senators, led by Anatoly Aksakov, chair of the State Duma Financial Market Committee, plans to present a bill to parliament that would authorize the Bank of Russia to set macroprudential limits on mortgage lending. This information comes from Interfax, as cited by Aksakov’s press office.

The bill aims to give the central bank the authority to restrain the provision of high-risk mortgage loans in order to curb rising debt levels among citizens and to mitigate risk exposure for banks and microfinance organizations.

Specifically, the proposed legislation would empower the regulator to cap the portion of loan approvals tied to real estate collateral. The restrictions would apply to both traditional banks and microfinance institutions alike.

Aksakov noted that macroprudential limits have previously demonstrated effectiveness when applied to consumer lending markets, underscoring their potential role in mortgage markets as well.

In his view, the increasing share of mortgages going to borrowers with heavier debt burdens signals a need for the regulator to be granted appropriate tools to protect citizens and ensure the financial market remains stable and resilient.

The report also indicated that macroprudential measures would not cover auto loans or mortgages secured by vessels used on seas and rivers.

Historically, Russians have been cautioned not to devote all funds to paying off a single mortgage early, suggesting a broader approach to household financial management.

There have also been remarks about the profitability of preferential mortgage programs at certain banks, with some observations suggesting such programs may not be advantageous for lenders in some situations.