Page 69 - RusRPTDec19

Corporate deposits were down 0.3% m/m in nominal terms in October ​but flat in FX-adjusted terms, for FX-adjusted y/y growth of 6% and a YTD decline of 1%.
8.1.4​ NPLs
8.1.5 ​Banks specific issues
The share of overdue loans in the retail portfolio fell to 4.6% in October from 4.7% in September. The corporate overdue ratio was flat at 8.0%.
Russia's largest banks have cut the mortgage rates by 20-110bp (basis points) in November​, following the ​bold fourth key interest rate cut​ by the Central Bank of Russia (CBR) this year, ​Vedomosti​ daily reported on November 29. As reported by ​bne IntelliNews​, the ​fall in mortgage rates expands the potential market for real estate purchases, and the ongoing fall in interest rates has been driving the growth of the residential real estate business. In November, the average mortgage rate fell further to 8.1%-8.9% for several large banks, including VTB, Alfa Bank and DOM.RF, ​Vedomosti reports. "Demand for mortgages is highly sensitive to rates, with every 100bp of rates cut leading to a 400-600bp change in the share of Russia’s working population that are eligible for mortgages," BCS Global Markets remind on November 29. The pace of rate cuts is impressive and imply the average rates in 4Q19 may turnout below 4Q18 (9.6%), BCS GM analysts believe.
The Central Bank will discuss with commercial banks in December the introduction of a leverage coefficient for clients’ mortgage loans. ​Were a client’s total loan payments to exceed a certain share of income (e.g. 50%), new mortgage loans could attract higher risk coefficients for the originating
69​ RUSSIA Country Report​ December 2019 ​ ​www.intellinews.com