Economy and financial sector generally stable, and Bank of Russia measures to limit risk accumulation
In 2024 Q2—Q3, banks and non-bank financial institutions maintained their profits at a high level, even despite growing interest rates. The corporate sector’s financial position was good as well, and companies were capable of servicing their debts.
Nevertheless, credit risks for both banks and businesses might accumulate. Therefore, the Bank of Russia plans to limit the concentration of bank lending and tighten the capital requirements for loans and investment in bonds of large highly leveraged companies.
Loan disbursements to individuals with high debt service-to-income ratios have been decreasing gradually. To cover possible risks related to such loans, banks have already formed a macroprudential capital buffer of about ₽1.1 trillion. Contrastingly, there is a growing number of new borrowers who have not previously had a credit history. The Bank of Russia will continue to monitor the level of people’s debt burden and take measures to limit it.
More details are available in the new issue of the Financial Stability Review.