Page 129 - RusRPTJun24

Notably, over 70% of credit card debt is attributed to cards opened before 2023, which are not subject to the current macroprudential limits (MPL). Moreover, 44% of new issuances are loans to borrowers with a payment-to-income (PTI) ratio of over 50%, as MPLs on credit cards restrict not the issuance of new cards, but the establishment of new or increased credit limits.
These factors, along with the desire to strengthen macroprudential measures, have led to stricter MPLs for the third quarter of 2024 in the credit card segment. Issuances to borrowers with a PTI ratio of over 80% are prohibited (compared to 5% in Q4 2023 - Q2 2024), and the share of cash loans to borrowers with a PTI ratio of 50-80% must not exceed 20% of total issuances (down from 25% in Q1-Q2 2024).
Like retail loans, the CBR is worried of a credit bubble forming in the housing market and has already tightened the macroprudential requirements for mortgages three times. As a result of the measures taken, in the first quarter 2024, the share of mortgage loans with debt service-to-income ratio above 80% declined to a still very high 34% of newly issued loans.
However, the pressure on mortgages will fall after the subsidised mortgage programme is phased out from July 1 this year.
The banking sector is showing signs of stress induced by the extreme conditions of sanctions and high interest rates, but the sector’s capital adequacy remains stable and grew from 12% to 12.1% month on month in April.
129 RUSSIA Country Report June 2024 www.intellinews.com