Bank lending conditions improving

The Bulletin is based on the quarterly review of 58 major Russian banks. Review results show that Q3 this year saw further reduction of interest rates in all the key segments of the credit market following the cut of the Bank of Russia key rate. Rates declined in the interbank credit market and deposit market and, accordingly, the rates on bank loans to the real sector of the economy fell. More accessible financial resources in the domestic markets together with higher competition between credit institutions triggered a decline in the interest rates on loans, increase in the maximum value of loans and maturities, and easing of other conditions. It results in growing borrowers’ demand for new loans among which mortgage loans and consumer lending take the lead.

At the same time requirements to the borrowers’ financial standing and collateral remain rather tough.