Page 80 - RusRPTOct21

Head of the CBR’s financial stability department, Elizaveta Danilova, said there has been an increase in loans borrowers who already spend more than 80% of their income on loan payments. Kommersant reports that defaults on consumer loans increased in August: by 0.4% for cash loans, 0.6% for credit card debt and 0.1% for car loans.
Last week, Sberbank—which occupies almost half of the mortgage market—announced the start of a mortgage refinancing program for borrowers who had previously refinanced, even several times. It is the last of its competitors to do so.anks report that there continues toe demand for refinancing programs despite the CBR hiking rates 125ps since July to 6.5%.
The CBR has taken a number of steps to curb lending, including introducing the debturden indicator (which restricts the issuance of new loans to the heavily indebted) as well as macro-prudential premiums to risk ratios (which make the issuance of such loans less profitable for banks). Starting from October 1, premiums for banks will increase again.
In addition to these measures, CBR Governor Elvira Nabiullina is advocating for the passage of bill that would allow direct quantitative restrictions on certain types of loans. She has also called on lawmakers to more tightly regulate how the total cost of a loan is calculated, a figureanks are required to share withorrowers. “It is important for us that loans help people solve their life problems and do not drive them into a debt hole,” she said.
As of August 31, there were a total of 375 credit organisations in Russia, of which 339 are banks. Of the banks 12 are strategically important banks, whose share in the assets of the banking sector, taking into account their subsidiaries (another 18 credit organisations), is more than 75% of the sector’s assets. The share of other large credit organisations from the top 100 is about 20% of the sector's assets. In August 2021, licenses were revoked from one small corporate entity with a share in the sector's assets less than 0.1%.
Russian real estate weekly subsidised mortgage origination hit a record low since its introduction at the start of September.based on the data from Dom.RF, the origination of subsidised mortgages reached RUB 3.9bn as of the week ended 2 September. This is less than half the amount in July-August, when every week the banks were issuing RUB 8.8-9.5bn, and only a tenth of the weekly origination (RUB 30bn,lended)before the subsidised programme was modified (April 2020- June 2021). The data on family mortgages is yet toe provided. Analysts think that the sector is going to cool in the short term, due to the modification of the subsidised mortgage programme. Its rate was increased 50bp from 1 July (to 7%) and the mortgage limits are now lower, at RUB 3mn for all regions (vs. the RUB 12mn for Moscow and St Petersburg, and RUB 6mn for other geographies). Partially offsetting this, the family mortgage programme (with a 6% rate, and a limit of
80 RUSSIA Country Report October 2021 www.intellinews.com