Page 65 - RusRPTJul19

8.1.3 Deposits
In May ruble deposits slipped by 0.3% versus 2.6% gain in April, while currency deposits inched by 0.5% after 0.5% decline in the previous month.
8.1.7 Banks specific issues
The mortgage market has passed its peak. The key rate in Russia remained unchanged, at 7.75%, after the CBR’s April meeting. Previously, mortgage rates reached a blended historical low level of 9.4% in October 2018, but saw an uplift after two 25bp key rate hikes in September and December 2018, resulting in the average mortgage rate reaching 10.6% in April 2019.
The total portfolio of consumer loans in Russian banks grown larger than the mortgage loans portfolio for the first time since 2013. Consumer loans expanded by 25% year-on-year in April 2019 versus 23.5% for the mortgage loan portfolio, the Central Bank of Russia (CBR) data shows.
Magadan region and the Yamalo-Nenets Autonomous District, according to Rosbank analysts, are the regions with the most affordable mortgage, RBC reports with reference to the bank’s research. The residents of these regions for servicing the loan takes a fifth of the salary. Moscow entered the top three Russian regions with the most inaccessible mortgages. Muscovites spend an average of 73% of their salary on loan servicing. The first place is occupied by Sevastopol. The residents of this city 80% of the salary goes to the mortgage. In the country as a whole, the share of wages that the average borrower will spend on mortgage payments has decreased. In late May, a conditional Russian spent on servicing the loan 45.8% of salary. In April, this
65 RUSSIA Country Report July 2019 www.intellinews.com