The Central Bank of the Russian Federation introduced stricter restrictions for banks and microfinance organizations on granting loans to borrowers with high debt burdens for January-March 2024. About This Central Bank reported On your website.
“The decision was taken to limit the debt burden of the citizens. First of all, those who already have a high debt burden,” the regulator explained.
We are talking about tightening the so-called macroprudential limits for banks and microfinance institutions.
According to the regulator’s new requirements, the share of loans to borrowers of banks and microfinance organizations with a debt load of 50% to 80% in January-March next year should not exceed 25%, compared to 30% in October-December this year. year. We are talking about borrowers who pay 50% to 80% of their monthly income to repay the loan.
The Central Bank kept the share of bank loans given to debtors with a debt burden of 80 percent and above at 5 percent. The ratio of MFO loans to borrowers in this category remained at 15%.
The share of bank loans with a maturity longer than five years was limited to 5 percent as before. There is no limit on loans to be taken from microfinance institutions for such a period.
The Central Bank explained that since the introduction of macroprudential limits, the share of bank loans to borrowers with a debt burden above 80 percent has fallen from 34 percent to 31 percent, but remains high. The regulator expects this share to fall to 20% by the end of 2024, taking into account the new tightening.
Previously at the Central Bank said “socialbites.ca” said that the quality of new bank loans worries the regulator.