Page 75 - RusRPTJul20

8.1.2​ Loans
Over the past year, the nominal stock of corporate loans granted by banks, calculated in rubles, increased by only 1.2%. ​About one-fifth of corporate loans are denominated in foreign currencies, and the loan portfolio, net of exchange rate fluctuations, increased by 4.5% last year. This was slightly less than in 2018 (5.8%). The growth rate of loans to households also slowed slightly last year. The stock of household loans grew by 18.5 per cent, which is clearly slower than the growth rate in 2018 (22.5%). The main source of financing for the banking sector, household deposits, grew by about 10%.
At the beginning of this year, the slight slowdown in loan growth continued, but the collapse in economic activity and the increase in uncertainty in March-April are clearly reflected in banking statistics. The annual growth rate of the household loan stock was still brisk, but compared to the previous month, the loan stock contracted for the first time since 2015. According to market participants, new loans were granted in April at about half of the March level. The volume of new consumer credit contracted particularly sharply, but new housing loans were also granted less than in previous months.
The stock of loans granted to companies grew strongly at the end of March, which indicates that companies are prepared for the difficulties ahead, e.g. by activating its borrowing. In April, corporate loan growth slowed slightly from March.
75​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com