The Bank of Russia has announced that it will maintain the current macroprudential limits (MPLs) on unsecured loans for the first quarter of 2025, consistent with those set for the fourth quarter of 2024. Additionally, the bank has reduced risk-weight add-ons for unsecured consumer loans.
The growth of unsecured consumer loan portfolios has slowed due to tight monetary policy and countercyclical macroprudential measures. Specifically, the monthly growth rate declined from 2% in May-June 2024 to 1.3–1.4% in July-August 2024, reaching 0.7% in September and turning negative at -0.3% in October. The most significant slowdown occurred in cash loans, which grew by only 0.5% over the third quarter of 2024 compared to a 4.7% increase in the second quarter. Conversely, credit card debt continued to grow rapidly by 12% in Q3 compared to a 9% rise in Q2.
The MPLs have improved lending standards: "the proportion of unsecured consumer loans issued to borrowers with debt service-to-income ratios (DSTI) exceeding 50%" contracted from "63% in 2022 Q4 to 28%2 in 2024 Q3," with their share declining from "64% to 49%" within portfolios. Loan quality stabilized after slight deterioration earlier this year, as indicated by leading indicators such as overdue rates after three months on books.
Keeping current MPL values into early next year is expected to further balance outstanding consumer loan portfolios, prevent increased household debt burdens, reduce risks for banks and microfinance organizations, and enhance financial stability overall.
Following an approval effective September last year (announced June), amid higher interest rates causing banks' costs—and thus effective interest rates—to rise even at similar borrower risk levels; tighter matrices now apply across differentiated EIR levels based on add-on calculations adjusted starting December second this year.
To enable continued lending without burdening capital amidst elevated interest rates: adjustments are made regarding matrix structures affecting risk-weighted add-ons from December onward.