The Bank of Russia mulls a new consumer loan category aimed at borrowers with below-average financial standing
The Bank of Russia is considering the introduction of a distinct consumer loan category for citizens whose financial situation is described as worse than average. This proposal is outlined in the Perspective Guidelines for the Improvement of Banking Regulation and Supervision. The goal is to create a financing channel that serves individuals who have traditionally found it difficult to secure credit from standard lenders.
According to the regulator’s proposal, the new category would target high-risk borrowers who face financial challenges yet would be able to maintain regular debt payments. The emphasis is on balancing access to credit with prudent risk management, ensuring that repayment obligations are sustainable for borrowers while expanding banking competition in the consumer loan market.
The Central Bank argues that such a measure could enhance market competition and draw back into the formal banking system people who previously turned to microfinance institutions or informal lenders with higher interest rates. By enabling borrowers to obtain loans from banks rather than from more expensive non-bank lenders, the cost of credit could decrease overall for these consumers. This shift is viewed as a path to greater financial inclusion and a more transparent lending environment, backed by regulated terms and oversight. [Bank of Russia]
In the broader macroeconomic view, officials suggest that widening access to bank loans for higher-risk borrowers could contribute to a more resilient credit market. The central bank indicates that reducing reliance on informal sources of credit may help stabilize repayment patterns and promote formal financial discipline across households. Experts note that this approach requires careful calibration to avoid excessive risk-taking, while still offering a viable alternative to more costly lending options. [Bank of Russia]
Alexei Zabotkin, Deputy Governor of the Central Bank, has commented on the potential for economic recovery. He suggested that the Russian economy could return to its previous level by 2025, provided structural adaptations are implemented. He noted that while the downturn experienced two years prior may have lasting effects, the path to recovery could be shortened if strategic reforms align with the new lending framework. The remarks imply that regulatory modernization and the introduction of consumer loan flexibility could fit into a broader plan to restore growth and stability in the near term. [Central Bank of Russia]