Russian banks have reduced the issuance of loans by a quarter

In the fall of 2023, the consumer lending market began to decline. In October, the volume of loans fell by almost a quarter after new restrictions by the Bank of Russia, reports Scoring Bureau.

“In October, banks issued unsecured loans worth 582.5 billion rubles, which is 6% less than in September and 22% less than in the record August. Before this – starting in January of this year – issuances were actively increasing from month to month, showing growth in the range from 2 to 37%,” the newspaper reports “Scoring Bureau” data.News“

Large banks confirmed the information to Izvestia. The Ural Bank for Reconstruction and Development reported that it had reduced the volume of consumer loans issued in September-October. The same changes were noted at VTB and PSB.

Previously, the Central Bank tightened restrictions for borrowers with large debt loads for the first quarter of 2024. This decision was made to limit the debt burden of Russians, especially those who already have a high debt load. It is clarified that after this step the share of consumer loans will decrease from 31% to 20%.