Financial Sector Overview
8.0
7.5
7.0
6.5
6.0 5.6
5.5
-11.4%
5.0
4.5
Bank of Russia FINANCIAL SECTOR OVERVIEW
The Central Bank of the Russian Federation
BANKING SECTOR: UNSECURED CONSUMER LENDING
The unsecured lending market is at an ascending stage of the credit cycle
Figure 22: Accelerated growth of the unsecured consumer lending
continues
Unsecured consumer loans, RUB tn, Ihs
YoY (by credit institutions operating as of the reporting date), rhs
7.9
30%
Against the background of advancing growth in unsecured
consumer lending relative to households' income, The Bank of
Russia revised the scale of risk weights for such loans in 2017-2018
in order to prevent excessive risk-taking in this segment
Figure 24: Risk weights applied to unsecured consumer loans, %
1.01.16
1.03.16
1.05.16
1.07.16
1.09.16
1.11.16
1.01.17
1.03.17
1.05.17
1.07.17
1.09.17
1.11.17
1.01.18
1.03.18
1.05.18
1.07.18
1.09.18
1.11.18
1.01.19
1.03.19
1.05.19
Figure 23: Share of NPLs decreased to 8.6%
20%
INPL ratio, lhs
18% 16.9%
16%
14%
12% 103.6%
10%
8%
Loan loss reserves to bad loans ratio, rhs
1.01.16
1.03.16
1.05.16
1.07.16
1.09.16
1.11.16
Source: Bank of Russia
1.01.17
1.03.17
1.05.17
1.07.17
1.09.17
1.11.17
1.01.18
1.03.18
1.05.18
1.07.18
1.09.18
1.11.18
1.01.19
1.03.19
1.05.19
☑24%
25.3% 18%
12%
■March 1, 2017
May 1, 2018
September 1, 2018
April 1, 2019
6%
0%
600%
-6%
600
-12%
500
400
300%
127.0% 130%
300
125%
230%
200%
120%
170%
+30
200
150%
+30
115%
+60
+30
+50
+30
+30
+10
110%
+20
100
+10
8.6% 105%
140
100
100
110
100%
0
10-15%
15-20%
20-25%
25-30%
30-35%
35%+
Effective interest rate
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