Central Bank of Russia to increase risk-weight add-ons for consumer loans on Sept 1

MOSCOW. June 28 (Interfax) - The Central Bank of Russia will again increase risk-weight add-ons for unsecured consumer loans from September 1, the regulator said in a statement.

This is due to the need to limit consumer debt and allow banks to build up their macro-prudential capital buffer.

Consumer lending growth has accelerated: debt increased 2.0% in May and 1.8% in April and March.

Yearly growth was 18.1% as of June 1 (in annual terms - 20%), which significantly outpaces household income growth (14.2% in Q1 2024 vs. Q1 2023) and is contributing to an increase in household debt.