Page 91 - RusRPTNov23

deceleration can be attributed to several factors. On one hand, there has been a decrease in demand for loans due to higher interest rates, as well as a slight slowdown in consumer activity. On the other hand, banks may have reduced lending volumes due to the tightening of macroprudential regulation and the need to comply with macroprudential limits (MPL) from the third quarter of 2023.
Starting from September 1, 2023, macroadditions to risk coefficients for high-risk loans were increased. The changes primarily affect loans with a default rate (PDN) greater than 50% and a share of special contingents (PSC) greater than 25%. These adjustments were expected to result in a reduction in lending in this segment.
Furthermore, as of October 1, 2023, macroprudential limits have been significantly tightened. In the fourth quarter of 2023, loans to borrowers with a PDN exceeding 80% and loans with a maturity of more than five years should not individually exceed 5% of total lending. This tightening of limits could lead to further reductions in lending, as preliminary data for the first half of October indicates a slowdown in lending activity.
91 RUSSIA Country Report November 2023 www.intellinews.com