The Bank of Russia Board of Directors made a decision to extend the non-application of the restriction on the total cost of consumer credit (TCC) for 2024 Q2:
- for credit institutions — for all types of consumer loans;
- for consumer credit cooperatives and agricultural consumer credit cooperatives — for all types of consumer loans; and
- for microfinance organisations — for mortgage-backed consumer loans and POS loans.
The limits will still apply to the TCC for other types of loans issued by microfinance organisations and for all types of loans issued by pawnshops. The TC? shall not exceed the least of the following values by more than one-third: 292% per annum or the quarterly average market values of the TCC calculated by the Bank of Russia for respective types of consumer loans.
The decision was made with due regard to significant changes in market conditions, primarily associated with amendments to the methodology for calculating the T?? effective from 21 January 2024. As per this amended methodology, the TCC shall include all payments made by a borrower that actually affect the terms of the loan. The calculation of the TCC according to the new methodology may lead to an increase in TCC values for consumer loans, while the actual expenses incurred by borrowers may remain unchanged.
The validity period of the moratorium takes into account a two-quarter lag between the quarter of the reference TCC calculation (2023 Q4) and the quarter of its application (2024 Q2).
Risks associated with issuing loans at high rates to risky borrowers will be constrained by high macroprudential add-ons. In addition, the statutory requirement for all lenders to cap an interest rate under a consumer loan agreement at 0.8% per day remains in force.
| Zařazeno | pá 15.03.2024 16:03:00 |
|---|---|
| Zdroj | CBRU |
| Originál | cbr.ru/eng/press/PR/?file=638463602060098543ENG_BANK_SECTOR.htm |
| Kategorie | Banking Sector |
| lang | en |
| guid | docid_39735 |
