In the second and third quarters of 2024, banks and non-bank financial institutions sustained high profit levels despite rising interest rates. The corporate sector also maintained a solid financial position, with companies able to service their debts.
However, potential credit risks for both banks and businesses may accumulate. In response, the Bank of Russia intends to limit bank lending concentration and tighten capital requirements for loans and investments in bonds of large highly leveraged companies.
Loan disbursements to individuals with high debt service-to-income ratios have been gradually decreasing. To address possible risks associated with such loans, banks have formed a macroprudential capital buffer of approximately ₽1.1 trillion. Conversely, there is an increasing number of new borrowers without previous credit histories. The Bank of Russia will continue monitoring people's debt burdens and take measures to limit them.
More details can be found in the new issue of the Financial Stability Review.