Exceptional surge in lending activities in March
Fired up on Finance: Here's the skinny on the eye-popping surge in average credit checks in Russia, as revealed by Equifax and RIA Novosti. reachin' up to 308,000 rubles per check!
Wanna know what's goin' on? Well, it's all about the liberal credit policies of financial institutions and a shake-up in the structure of consumer credit issuance. The overall bank portfolio for consumer lending grew a beefy 1.7% last March, stretchin' out to nearly 5 trillion rubles.
But with that boom in consumer credits, the percentage of late loans from Russians started creepin' up. By early April, it hit 25%, markin' the highest level since 2018. Central Bank statistics show that as of January 2021, about 41.9 million Russkies had at least one open credit, totalin' around 5 trillion rubles in 2020.
With banks handin' out a whopping 15 million consumer loans in 2020, that's 10% fewer than in 2019, according to Profiles' report. The Central Bank is s'posed to start lyin' off the regulations on credits issued before April 1, 2020, startin' from June 30, 2021. On the flip side, requirements for loans issued from July 1, 2021, are aimin' to get tougher. The Bank of Russia's thrypt is that the country's economy has bounced back earlier than expected, so they're tweakin' the lendin' sector's regulations.
Now, here's where things get a little more complex. Economists have got a few theories about the factors influencin' the increase in average credit check size in Russia:
- The Bank of Russia's high key rate of 21.00% is meant to fight inflation and could lead to higher borrowin' costs, impactin' consumer credit issuance and the size of credit checks.
- Russia's budget deficit has widened due to a drop in oil and gas revenue, which might lead to changes in fiscal policies that'd indirectly affect consumer finances.
- Global financial stability risks have risen, potentially impactin' Russia's financial sector and consumer credit markets.
This economic environment could potentially slow down consumer credit growth and increase the risk of overdue loans. But with the specific data on the growth in the average credit check size or consumer credit issuance not available in the provided search results, more information on the Russian financial sector or banking reports would be necessary for a more detailed picture.
The surge in average credit checks in Russia, as revealed by Equifax and RIA Novosti, can be attributed to the liberal credit policies of financial institutions and the structure of consumer credit issuance. In terms of personal-finance and business, the increase in the average credit check size stands at 308,000 rubles per check, and the percentage of late loans from Russians has reached 25%, marking the highest level since 2018.