Consumer credits requested postponement

The Association of Russian Banks (ARB) asked the Central Bank head Sergei Ignatiev to postpone for one year the planned tightening of credit institutions, loans to citizens. Market participants believe that the amendments to the banking law, which offers controller, will lead to the stagnation of consumer market.

 Bankers are not satisfied with the initiative of the Central Bank, which intends to early next year, a more stringent reserve requirements and capital calculation of credit institutions issuing unsecured loans to households (see RBC daily from 26/09/12). On Friday, the ARB has published on its website a letter to the head of the regulator, which proposed to delay the entry into force of the amendments to 2014.

 The Association does not agree with increased odds that the Central Bank is planning to use for the calculation of capital adequacy ratio for loans with high interest rates. The regulator believes that the ruble consumer loans with a rate of 30-35% per annum shall apply factor 1.3, the value of loans 50-60% annual rate to reach 2, and more than 60% per annum - and at 2.5. ARB proposes to apply a maximum factor of 2.5 for loans at the rate of 90% per annum.

 The letter also requested ARB not to use higher demands on loans to customers whose aggregate loan payments do not exceed half of their monthly income. Changes in the rules for calculating the capital "at this stage are too radical, their adoption will lead unjustified decline in all types of lending," says president of ARB Tosunyan. Most market participants surveyed by RBC daily, said that in the course of the initiatives of the Association of Russian Banks, but did not comment on them.

 "We believe that the concern of the Central Bank has reasonable, however, to avoid the risk of borrowers and debt load instability of banks, you can use other measures, including some of the proposed ARB" - says Director of Business Development GE Money Bank Elman Mehdiyev .

 In HCF Bank believes that the planned actions of the Central Bank should be taken gradually. "Against the background of lack of liquidity, banks will have to reduce the supply of loans," - said the director of the Legal Department of the Bank Alexander Gontarenko. According to him, there is a risk that the continuing high demand from the public people will go to less regulated microfinance organization.

 As told RBC daily, a source at one of the retail banks, the market is quite concerned about the upcoming changes in legislation. "It is clear that the impact on business will still be done, just do not understand the extent of the damage," - says the financier.

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