From January 1, the Bank of Russia will receive the right to introduce quantitative restrictions on the issuance of certain types of consumer loans and loans in credit and microfinance organizations. New rules come into force in accordance with the Law of December 6.
Now the Central Bank will be able to resort to the so-called macroprudal limits, establishing for institutions the maximum permissible share of specific products. The decision will be taken, taking into account the risks of increasing the debt burden of borrowers, they will determine the Central Bank.
New restrictions will not affect loans and loans for legal entities, as well as individuals in the event that money is needed for business activities. They also do not apply to the obligations provided by the mortgage or laid car.
In the Central Bank clarified that the tool would plan to the second half of 2022: the banks promised to provide time to “they configured their systems” to track the limits. The regulator plans to use the mechanism when enhancing risks.