OREANDA-NEWSHigh growth rates of consumer lending in the Russian Federation can create financial stability risks, while the effect of the CBR measures to “cool down” this segment is not yet clear. This is stated in the material of the World Bank (WB) "Report on the Russian economy".

“High growth rates in household lending amid stagnating incomes can pose financial stability risks if macroeconomic conditions worsen, as low-income borrowers or burdened with several loans are likely to be at risk of over-lending. It’s not clear what effect they will have yet. Bank of Russia measures to limit unsecured consumer lending Additional macro-prudential measures may be required if lending growth rates are not slowing", the report says.

According to World Bank analysts, as a result of Central Bank measures, the quality of unsecured loan portfolios of banks and microfinance organizations (MFIs) may also decrease. Some borrowers who borrowed money from several organizations to repay debts will no longer be able to refinance their debts and may have difficulty repaying loans.