The leadership of the Central Bank of the Russian Federation has expressed concern about the quality of consumer lending. This was stated by the bank’s head at an international banking forum and reflected in remarks published on the event organizer’s site.
Personal loans have returned to levels seen before the last financial downturn. Yet, officials warn that the quality of these loans remains a risk. The central bank notes that recent growth in consumer lending has been driven largely by extending credit to individuals who already carry a significant debt load or who hold long-term debt obligations. This situation prompted calls for precautionary measures.
Officials emphasized the need to curb risky lending practices. In particular, the share of loans going to borrowers with a debt burden exceeding a certain threshold has been restricted. The bank has moved to a new standard, aiming to limit credit exposure to those who allocate more than half of their income to debt service payments.
There is an explicit aim to minimize the occurrence of loans where personal income tax obligations account for a very large portion of earnings. The regulator wants to keep debt service within sustainable bounds for the average household.
Starting September 1, the Central Bank tightened requirements for unsecured lending, including consumer loans and credit cards. The policy introduces higher risk premiums for unsecured loans, which increases the capital resources banks must hold against potential losses. In practical terms, higher premiums mean larger capital buffers for lenders and the ability to cover losses from overdue payments should problems arise in the loan portfolio. These premiums are set to apply to all loans with a full cost that includes service charges, commissions, and insurance costs. The threshold marks a shift for Russians earning at least a fixed income level, and previously regulated loans with different premium rates were applicable to various income brackets.
The changes mark a notable tightening of lending criteria, with broader coverage across loan products and a stronger emphasis on prudent risk management. Banks are now expected to maintain higher capital reserves proportional to the risk profile of the loans they originate. The overall effect is to strengthen the resilience of the financial system while guiding credit growth toward borrowers with clearer capacity to meet obligations. Policy observers note that the implementation signals a long-term rebalancing in credit expansion criteria for both individuals and financial institutions.
Analysts and market participants are watching how these rules influence consumer borrowing behavior, loan pricing, and credit availability in the months ahead. The central bank’s actions are framed as a response to a multifaceted risk environment, where rising household leverage could translate into broader financial instability if not managed carefully. The intention is to foster sustainable lending practices that support household finance and financial system health over the medium term, while maintaining access to credit for borrowers with solid repayment prospects.
In practical terms, banks are required to adjust their risk models and capital planning to align with the new framework. The regulator’s objective is clear: promote responsible lending, ensure adequate buffers against potential losses, and maintain the integrity of credit markets even as consumer demand for loans trends upward. The overall tone of the policy is one of caution and measured control, designed to balance the benefits of accessible credit with the need to protect households and the banking sector from excessive risk. Observers are urged to monitor developments and the central bank’s communications for further refinements to the lending landscape and the implications for borrowers across the federation.