Rate Limits for Consumer Loans Mulled
- The Moscow Times
- Sep. 09 2013 00:00
- Last edited 17:14
Ináan attempt toáclamp down onáexpensive consumer loans, theáCentral Bank may begin setting maximum rates that banks are allowed toácharge their clients.
Giving theáCentral Bank theáauthority toáset rate fluctuation ranges forádifferent types ofáunsecured consumer loans was discussed atáa recent meeting with Central Bank Chairwoman Elvira Nabiullina, Kommersant reported Friday, citing aásource familiar with theámeeting.
Rates currently range widely forácertain consumer loans. Mortgage loans differ byá1.77 percentage points fromáthe average rate, 13.73 percent, but point ofásale loan rates sometimes deviate 24 percentage points fromáthe average andácan reach 60 percent annually.
Theáamendments have already been submitted toáthe Finance Ministry andácould be added toáa law onáconsumer lending expected toápass theáDuma this fall.
Central Bank Deputy Chairman Mikhail Sukhov said consumer loan regulation could partially solve problematically high-rates forálow-income borrowers andáwould also push banks toásubstitute their high-risk assets with more secure ones.
However, theámeasure would also slow lending, leading toáfears that it could lower consumer demand andáhamper aáRussian economy that has seen only limited growth iná2013.
Central Bank data shows that unsecured loans accounted forá63.5 percent ofáall retail loans ináthe first half ofáthe year.