Page 97 - RusRPTNov23

8.1.7 Banks specific issues
Preliminary data indicates that mortgage lending has once again broken records in September. The portfolio growth in September amounted to 4.2% (+3.7% in August), and year-to-date growth reached 23.5%, surpassing the exceptional figures of 2021 (20.9%).
By volume, loans worth 955bn rubles were issued, marking a 12% increase compared to August (849bn rubles). This surge could be attributed to people's rush to secure mortgages before any potential increase in down payments through preferential programs, along with concerns about rising property prices amidst the depreciation of the ruble. Additionally, banks aimed to issue loans before the tightening of macroprudential regulation from October 1, 2023, which includes prohibitive macroadditions for the riskiest loans.
The increase in lending was primarily driven by mortgages with government support. In September, approximately 646bn rubles were issued (+27% compared to August), including around 289bn rubles for "Family Mortgages" (up from 232bn rubles in August) and 286bn rubles for "Discounted Mortgages" (compared to 226bn rubles in August). However, preliminary data suggests that market-rate mortgage lending saw a slight decrease of approximately 9% due to rising interest rates.
Mortgage lending in September showed a 4.2% expansion, surpassing the 3.7% growth observed in August to reach a new record high, the
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