The Law on Personal Credit Rating Came Into Force in Russia
OREANDA-NEWS On Thursday, January 31, amendments to the Federal law "on credit histories" came into force. According to this information Russians will receive a personal credit rating and will be able to learn it together with the report of the credit histories Bureau.
The law on amendments was published on August 8, it came into force on January, 31.
Credit rating is a score calculated automatically based on your credit history. Its value will be affected by the presence of loan arrears, the level of debt burden, the number of requests for credit history verification and other factors. The higher the score, the less likely it is to refuse to apply for a loan, but even a high score is not a guarantee, because the decision is made by the lender.
To obtain information about your credit history and the individual rating of the citizens in Bureau of credit stories. The list of these offices is available on request from the public services website. And every Russian can order two free reports during the year, not one, as it was before.
Earlier, the United Credit Bureau estimated the individual credit rating of 77.7 million Russian citizens who have ever taken a Bank loan or a loan to a microfinance institution. Analysts found that a high credit rating has 60.6 million people, or 78%, the average rating — 7.4 million (9%), low — 9.8 million (13%).
The share of Russians with a high credit rating is highest in Moscow (84%), in Chukotka Autonomous district and Ryazan region — 83%, in Penza, Orel, Bryansk regions, St. Petersburg, Mordovia and Chuvashia-82%. Most citizens with a low credit rating were among the residents of Tuva-29%, Altai Republic — 22%, Karachay-Cherkessia and Buryatia — 19%, Khakassia, TRANS-Baikal territory, Kabardino — Balkaria, North Ossetia and Kemerovo region-18%.
In December 2018, the Bank of Russia agreed to Raiffeisenbank's use of its own credit risk management methodology with the implementation of an internal rating approach (IRR).
The mechanism of the "advanced approach"(provided for by the Basel II standard) is that the Bank can assess the credit risk retrospectively on the basis of the statistics accumulated in previous years in the Bank on the maintenance of loans issued, build on this analysis model and calculate reserves for possible losses on loans, based on the risks that this model calculates. "Advanced approach" allows more accurate assessment of the risks of a particular Bank and save on reserves, freeing up capital.
In November 2017, UniCredit Bank announced its desire to become the third Bank to apply its own methods of credit risk management.