In November, 170 Russian banks reported a decline in retail loans exceeding one trillion rubles, a situation attributed to the Central Bank's aggressive inflation-fighting measures.
Natalia Bogomolova, director of the rating agency NRA, noted that consumers are refraining from taking loans due to elevated interest rates, while banks are tightening their risk policies to meet regulatory standards. This trend is expected to continue into December, as many banks have paused unsecured loan issuances, focusing instead on portfolio quality.
Andrey Gangan, head of the Central Bank's monetary policy department, indicated that the fall in credit activity was more severe than anticipated. According to the Central Bank, corporate loan portfolios grew by only 0.8% in November, compared to a 2.3% increase in October.
The Central Bank's decision to maintain the key interest rate at 21% annually has contributed to the rising cost of loans. Elvira Nabiullina, head of the Central Bank, stated that the tightening of monetary conditions was more significant than previously expected, resulting in the current level of loans being equivalent to what would be seen at an interest rate of 24%.