On Aug. 30, RUS CB announced it has set limits on unsecured loans.
RUS CB introduced macroprudential limits (MPLs) on unsecured loans and borrowings.
Key Points
The MPL is specifically set to limit lending to borrowers with a high debt burden and to reduce lending to borrowers who spend over 50% of their income on loan payments.
RUS CB is tightening the MPL for loans with a high probability of default for Q4 2024.
RUS CB announced it will increase macroprudential capital requirements for banks on non-purpose consumer loans secured by personal vehicles from Nov. 1, 2024.
An increase in premiums in the probability of default segment by more than 50% will discourage the issuance of secured loans to citizens with an already high debt burden.
Effectiveness
New Q1 macroprudential capital requirements for banks are introduced Nov. 1, 2024.
Decision on the value of macroprudential limits for the Q1 2025 will be made in Nov. 2024, accounting for dynamics of the debt burden of citizens and lending standards.
