Page 73 - RusRPTOct21

(1.8%) increase in retail loans and a RUB0.6 trillion (1.3%) growth in corporate lending.
Retail lending growth in July was lower than in June (when it was 2.5%) largely due to a moderation in mortgage lending growth (RUB0.2 trillion in July, compared with RUB0.3 trillion in June).
The latter was a result of the lower RUB3mn maximum loan limit (compared to RUB12mnefore July) in large cities under the recently extended state-subsidised programme and higher market interest rates.
Corporate lending slowed down somewhat in August (RUB326bn, or up 0.7%) after a significant increase in July (up 1.5%). About half of the increase was accounted for lending to large companies from the oil and gas industry, and another quarter lending to housing developers.
The growth of mortgage, according to preliminary data, remains quite stable (in August there was only a slight decrease to 1.8% from 1.9% in July). At the same time, according to preliminary data, issuances increased 4%, despite the almost two-fold reduction (to RUB37bn from 70bn rubles) in issuances of preferential mortgages at 7%.
Demand has redistributed to market mortgages and other preferential programs, including family mortgages. At the same time, taking into account the overall growth rates, the average rate on mortgage loans issued in July increased to 7.7% from 7.1% in June, although rates in the primary market are still quite low at 6.2%, up from 5.5% in June.
Consumer lending in August accelerated to 2.2% from 1.7% in July, which is a significant degree due to seasonal factors - a large amount of spending before the new school year, as well as spending on vacations.
The impact of July surcharges has so far had a limited effect due to the gradual portfolio turnover, the accumulated capital stock of the largest players and the generally high profits of banks.
To reduce systemic risks, from 1 October 20217, the premiums will further increase, according to the Central Bank of Russia (CBR).
Net savings heldy households are now the lowest they've been since 2009. Russians owe a cumulative 23.56 trillion rubles ($323.24bn) while holding a combined 25.86 trillion rubles ($354.8bn) inanks. That may appear to be a decentalance all things considered,but right now households are withdrawing an average of 250illion rubles out of the bank every month, indebtedness continues to rise, and those savings are skewed towards the top 30% of all earners.
The rate of savings decline for 2020-2021 is quite steep and continuing. The one-off payments would only arrest that decline for about a month given they were still quite small. Microfinanciers have relaxed conditions for clients employed in sectors that have been hardest hit by the pandemic, But recovery to pre-crisis indicators is still a ways off. In effect, the lenders are keeping things afloat while borrowers try to keep their wages and incomes up. Per
73 RUSSIA Country Report October 2021 www.intellinews.com