Translartion. Region: Russians Fedetion –
Source: Central Bank of Russia –
The Bank of Russia has approved surcharges to risk coefficients in connection with the entry into force new edition of the normative act, which determines the procedure for establishing macroprudential surcharges: surcharges for credit card debt in the grace period1 have been reduced, while those for other assets have been left unchanged.
The Board of Directors of the Bank of Russia, when adopting this solutions proceeded from the following.
Bank data show that credit card debt in the grace period is characterized by lower default rates (2-3 times lower than debt for which the grace period has ended). Borrowers use them mainly for transactions and do not pay interest on the debt during the grace period, which reduces the likelihood of it becoming delinquent. Clients who manage to repay the debt within the grace period, as a rule, are characterized by a more reliable risk profile. In this regard, in order to increase risk sensitivity, changes were made to the regulation, allowing for the establishment of macroprudential surcharges for debt in the grace period, depending on the debt burden ratio (DBR) of the borrower.
Values of surcharges to risk coefficients in relation to debt on loans with a credit limit in the grace period formed from February 1, 2025
| PDN interval, % | ||||||||
|---|---|---|---|---|---|---|---|---|
| No PDN | (0-30 | (30-40sh | (40-50sh | (50-60sh | (60-70sh | (70-80sh | 80, PDN not calculated | |
| Allowances | 2.0 | 0.2 | 0.2 | 0.2 | 0.5 | 1.0 | 1.5 | 2.0 |
Surcharges for credit card debt that has exited the grace period will be set in accordance with the surcharge matrix in effect since December 2, 2024.
Reference: risk coefficient premiums for unsecured consumer loans granted from December 2, 2024
| Allowances | PDN interval, % | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| No PDN | (0-30 | (30-40sh | (40-50sh | (50-60sh | (60-70sh | (70-80sh | 80, PDN not calculated | ||
| PSC interval, % per annum | (0-10sh | 1.8 | 0.0 | 0.0 | 0.2 | 0.3 | 0.7 | 1.2 | 1.8 |
| (10-15sh | 2.0 | 0.0 | 0.2 | 0.3 | 0.5 | 0.9 | 1.4 | 2.0 | |
| (15-20sh | 2.4 | 0.4 | 0.5 | 0.7 | 0.9 | 1.3 | 1.8 | 2.4 | |
| (20-25 | 2.9 | 1.0 | 1.2 | 1.4 | 1.7 | 2.0 | 2.3 | 2.9 | |
| (25-30 | 3.6 | 1.6 | 1.7 | 1.9 | 2.2 | 2.6 | 3.0 | 3.6 | |
| (30-40sh | 3.8 | 1.7 | 1.8 | 2.0 | 2.6 | 3.0 | 3.2 | 3.8 | |
| (40-50sh | 4.0 | 1.8 | 2.0 | 2.2 | 3.0 | 3.2 | 3.5 | 4.0 | |
| (50-60sh | 5.0 | 2.0 | 2.2 | 2.5 | 3.2 | 3.5 | 4.0 | 5.0 | |
| 60 | 6.0 | 6.0 | 6.0 | 6.0 | 6.0 | 6.0 | 6.0 | 6.0 | |
According to the Bank of Russia, given the current structure of issuances, the average level of premium on credit cards in the grace period will be 0.7 (70%). For large banks, such debt currently accounts for one third to one half of all debt on credit cards. Despite the reduction in premiums for this part of the portfolio and the slowdown in lending growth (in December 2024, the unsecured loan portfolio decreased by 1.9% after near-zero changes in debt in October-November 2024), the macroprudential capital buffer for unsecured consumer loans2 will generally continue to accumulate due to the gradual renewal of the loan portfolio.
1 The credit institution shall accrue interest on the current term debt on the specified requirements at the rate specified in the consumer credit (loan) agreement for performing transactions using a bank card, and shall not collect payments on the credit (loan), except for payments to repay the principal amount of the debt, in accordance with such agreement during the period of time specified therein.
2 As of December 1, 2024, the macroprudential capital buffer for unsecured consumer loans (including cash loans) amounted to 0.8 trillion rubles (6% of the portfolio of these loans).
When using the material, a link to the Press Service of the Bank of Russia is required.
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect
HTTPS: //VVV. KBR.ru/Press/PR/? File = 638737649777799232FinStab. HTM