Retail and corporate lending speeds up notably in July
The growth rate of mortgage lending nearly doubled, reaching +1.3% after +0.7% in June, according to preliminary data. About a half of the issued loans were market-based mortgages, which was owing to an overall decrease in interest rates.
The rise in unsecured consumer lending also accelerated significantly, namely from +0.2% in June to +0.7% in July, and might edge up even more in the next few months. Furthermore, banks considerably expanded their corporate loan portfolio (+1.2%), with the trend towards its dedollarisation remaining.
Banks had no difficulties with the funding of credit growth. The inflow of clients’ funds was up: legal entities’ funds increased by 1.5%, and households’ funds — by 0.5%. People mostly placed their funds in current accounts, which was predictable considering the decline in deposit rates and the maturing of ‘expensive’ April deposits.
More details are available in the information and analytical material Russian Banking Sector Development in July 2022.