The Association of Russian Banks fears that due to the quantitative limitation of loans, “black” lenders will become more active, who will issue money at usurious interest rates, dooming citizens to debt bondage. ADB President Georgy Luntovsky said this in an interview with Izvestia, commenting on the adoption of a law giving the Central Bank the right to limit the number of loans issued to citizens.
The law will come into force on July 1, 2022, recalled Georgy Luntovsky. He stressed that for banks this will lead to an increase in the operating load: they will have to change well-oiled processes, incur additional costs. It is possible that new reporting will appear.
“The main fears are related to the fact that restricting the access of certain groups of the population (in particular, citizens with informal or low income, as well as those already borrowed) to credit products of banks and microfinance organizations may lead to an increase in the shadow financing market. This can happen due to regulatory arbitration, when lending to these groups of citizens will continue due to schemes that are legal, but not included in the perimeter of regulatory restrictions – installments, leasing, ”explained Georgy Luntovsky.
At the same time, according to the President of ADB, the position of the Central Bank is clear – the share of consumer loans with a debt burden above 80% in 2021 increased to 31%. Strengthening the protection of the retail customer is really ripe.
More details in an exclusive interview with Izvestia:
“Due to the quantitative limitation of loans,” black lenders “become more active
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
