The State Duma recently approved in the first reading a bill that would empower the Central Bank to curb the issuance of mortgage loans by banks. The draft law, prepared by a group of deputies led by Anatoly Aksakov, introduces changes to the law On the Central Bank. The move is corroborated by official data and the vote results published on the Duma’s website, signaling a formal step in the regulatory process.
Under the proposed rules, the Central Bank would have the authority to set limits on the portion of housing loans backed by real estate that banks can issue. If enacted, these powers would take effect from July 1, 2024. The intent behind this shift is to create a mechanism that helps manage risk within the banking system by curbing excessive exposure to real estate backed debt in new lending activity.
As stated in the explanatory note accompanying the bill, the objective is to reduce the risk of a buildup of problematic mortgage debt across bank portfolios. At present, tighter credit limits exist for consumer loans, but they do not extend to mortgage lending. The proposed rules would close that gap and apply a more uniform set of risk controls across different loan types.
Previously, the Central Bank highlighted concerns about the share of highly indebted loans within bank portfolios. The administration noted that the share remained above a threshold that could signal elevated risk, and the new measures are anticipated to bring that figure down toward more sustainable levels by the end of 2024. In parallel, officials have discussed the broader objective of stabilizing mortgage arrears and improving overall loan quality within the banking sector.
Analysts observe that if the measure passes, banks operating in the United States and Canada may monitor similar prudential trends as they reassess mortgage lending standards. The discussion emphasizes that the stabilization of mortgage risk has become a major focus for regulators around the world, with Canada and the United States often looking to international experiences to calibrate their own approaches. Market participants in North America will be watching closely how the central bank authorities in Russia implement these changes and what lessons may be drawn for risk management practices, underwriting standards, and capital adequacy planning. The ongoing regulatory evolution underscores the broader objective of maintaining financial stability without unduly constraining legitimate housing demand. Attribution: official records from the Duma and subsequent statements by the Central Bank leadership.