Level of debt burden of Russians reached record

The level of debt load of Russians as a result of the first half of 2021 reached the maximum value for all the time of observations – 10.24 percent. On a record ratio of expenses for payments on loans and disposable income of the population, the Central Bank was informed in the “Review of Financial Stability”, published on the regulator website.

The growth of the debt burden of the population of the Central Bank attributed to the vulnerabilities of the financial sector. The main fact in the growth of the indicator was made by segments of unsecured consumer and mortgage lending, and in the first segment the trend is connected exclusively with an increase in the average amount of the debt per borrower. According to the regulator, it increases the risks of the portfolio of unsecured loans.

In the review of the Central Bank, it is noted that on October 1, an annual rate of increment of debt on unsecured consums amounted to 19.1 percent. The indicator corresponds to the dagedmium level, but the regulator considers it unbalanced in the conditions of slow growth of Russians, “which creates prerequisites for deteriorating the credit quality of retail portfolios in the future.”

In addition, it is noted that the volume of issuing risky unsecured loans with an indicator of debt load above 80 percent increased from 23 percent in the second quarter of last year to 31 percent in the third quarter of 2021. Also, the regulator has posted that banks are increasing the unsecured Credit “Without proper checks received by the Borrower of income”.

Previously, the Central Bank repeatedly pointed to the risks associated with the growth of the slaughter of Russians, and even spoke of the formation of bubbles. With the assessment of the regulator, I do not agree to the government: In the Ministry of Economic Development, in late November, “Lente.ru” reported that such a threat did not see, and banks have a “stock” by the portfolio growth.

/Media reports.