Page 90 - RusRPTNov21

8.1.2 Loans
In August–September, banks continued to respond to the tightening of the Bank of Russia’s monetary policy, gradually raising their interest rates on deposits. As a result, the inflow of households’ funds to banks was primarily made up of time deposits across maturities demonstrating the highest growth in interest rates.
The increase in lending rates led to a slowdown in corporate lending in August, which nonetheless continued to expand at a rate close to its high observed in the recent six years. Participants’ activity in the retail lending market was high in the segments of mortgage and consumer lending.
In September, corporate lending accelerated significantly and increased by 1.6% m/m to RUB805bn after an increase of 0.7% in August, which is significantly higher than the average monthly rate since the beginning of the year. Overall credits are up 0.9% y/y.
The increase in the portfolio was largely attributable to the financing of certain large infrastructure projects in the oil and gas industry. Lending to housing developers also remains one of the main growth factors - an increase over the month amounted to about RUB300bn, which is more than two times higher than the average monthly rate since the beginning of the year.
Mortgages, according to preliminary data, accelerated again up 2.1% m/m after a slight slowdown in August (1.8%). Issuance of preferential mortgages at 7% remain in the amount of about RUB40bn, while the "family" one is
90 RUSSIA Country Report November 2021 www.intellinews.com