Banks expect softer lending conditions for households in the first half of the year

According to the information-analytical bulletin 'Updates of Bank Lending Conditions', the Russian Banks are prepared to reduce consumer loan rates and increase maximum loan amount for certain customer categories in the first half of 2016.

Banks also intend to continue lending customers under mortgage interest rate subsidy programme. The programme heavily supported mortgage lending in 2015.

Banks peg possible further softening of lending for small and medium enterprises (SME) to the implementation of special programmes maintained by SME support institutes (SME Corporation and SME Bank).

Credit Institutions rely on the increase in demand for loans by households and demand recovery by SMEs in Q2 2016.