Central Bank of Russia From January 1, received the right to introduce quantitative restrictions for credit and microfinance organizations to issue separate types of consumer loans and loans. New rules began to act in accordance with the Law of December 6.
New requirements will not affect loans and loans for legal entities, as well as individuals, if funds go on business activities. Restrictions will not apply to those commitments that are provided with a mortgage or laid car.
The regulator can now set the maximum permissible share of specific products in financial institutions. When making a decision, risks of increasing debt burden of borrowers will be taken into account, the Bank of Russia will determine them.
The State Duma adopted the law at the end of November 2021, and in the Central Bank, in turn, clarified that the tool was resorted to the second half of 2022: the banks will need to “set up their systems”. Use the mechanism regulator wants in case of risks.