"In the past year, the Central Bank stepped up efforts to select a quality borrower," - said Daniil Nametkin, Deputy Head of the Expert Analytics Department at the Analytical Center, in an interview with the correspondent of Vesti.Economics.
The Central Bank stepped up efforts to select a quality borrower
"In particular, the method for determining the risk coefficient of individual groups of borrowers was revised, and the use of such a tool as credit histories was improved," Nametkin explained. Moreover, in terms of the loans-to-GDP ratio, Russia lags behind many developed countries, and there is a certain buffer. However, if we talk about the quality of GDP growth, questions arise when consumer loans are almost a key factor in economic development, he said.
In addition, Nametkin added, in Russia about half of the population receives salaries at a level close to the minimum subsistence level, and therefore is not inclined to borrow. That is, the potential base for increasing the volume of lending is quite limited and is already approaching its ceiling. In this regard, along with the growth of incomes, it is necessary to work on increasing production capacities and directing borrowers' funds to the purchase of domestic rather than imported products, stated the expert, stressing that in the event of growth of crisis phenomena in the economy, a higher debt burden level on the population will exercise additional negative pressure.
Moreover, the risks of increasing credit pressure, which can become unbearable in a crisis, should be kept in mind by those 2.6 million Russians who spend up to 60% of their earnings for the repayment of loans.