Central Bank does not see systemic risks in growth dynamics of consumer lending, there are no grounds for strict regulation yet – Nabiullina

TASS Russian News Agency | Sep 13, 2019 at 2:40 PM

SOCHI, September 13. / TASS /. Russian Central Bank does not see systemic risks in the dynamics of growth in consumer lending, there are no grounds for strict regulation yet, and Central Bank's head Elvira Nabiullina told reporters on Friday.

"We do not see any need for urgent adoption of such additional measures. We are talking about a possible expansion of the arsenal [of measures], while those measures that start working on October 1 are enough," she said.

"The growth of consumer lending should not be excessive, should not create systemic risks. As long as there are no such risks, we are taking all the necessary measures," said Nabiullina.

Earlier, the Central Bank published an advisory report in which it was advisable to grant it authority to limit the issuance of certain types of loans. Starting October 1, Russian banks will have to calculate the leverage ratio and apply premiums to risk ratios depending on the leverage ratio and the full cost of the loan. An increase in risk ratios means that the bank will need more capital than before to secure loans. This makes credit expansion less profitable.