Bank of Russia lifts limits on full loan value on consumer credits by yearend
It is suggested that the easing adopted will provide creditors with more flexibility in adjustment of interest rates both on credits and loans and on deposits amid the key rate hike.
Russia’s Central Bank will not limit the full loan value on all categories of consumer loans and separate types of credits by the end of this year, the press service of the regulator reported on Wednesday.
"The board of directors of the Bank of Russia has made a decision not to limit the full loan value from August 16 to December 31, 2023: for credit organizations - on all categories of consumer loans," the report said.
Limitations suggest that the full loan value may not surpass the lowest of values: 292% per annum or the average market value of the full loan value on a respective category of the consumer loan applied in a respective quarter, by more than one third.
It is suggested that the easing adopted will provide creditors with more flexibility in adjustment of interest rates both on credits and loans and on deposits amid the key rate hike. It is also expected to improve the efficiency of the transmission mechanism of monetary policy and speed up the influence of the regulator’s decisions on attractiveness of deposits and lending growth rates, as well as allow limiting proinflation risks faster, the Central Bank explained.
Source
Russia’s Central Bank will not limit the full loan value on all categories of consumer loans and separate types of credits by the end of this year, the press service of the regulator reported on Wednesday.
"The board of directors of the Bank of Russia has made a decision not to limit the full loan value from August 16 to December 31, 2023: for credit organizations - on all categories of consumer loans," the report said.
Limitations suggest that the full loan value may not surpass the lowest of values: 292% per annum or the average market value of the full loan value on a respective category of the consumer loan applied in a respective quarter, by more than one third.
It is suggested that the easing adopted will provide creditors with more flexibility in adjustment of interest rates both on credits and loans and on deposits amid the key rate hike. It is also expected to improve the efficiency of the transmission mechanism of monetary policy and speed up the influence of the regulator’s decisions on attractiveness of deposits and lending growth rates, as well as allow limiting proinflation risks faster, the Central Bank explained.
Source