CBR can set macroprudential limits on mortgages and auto loans starting April 1, 2025 - law

MOSCOW. Nov 13 (Interfax) - The State Duma has approved a bill at its third reading that allows the Central Bank of Russia to apply macroprudential limits to mortgage and auto loans from April 1, 2025.

The document, no.531412-8, was submitted to parliament by a group of MPs in January.

Initially, the proposed legislation allowed the CBR to apply macroprudential limits to mortgage loans, and it was expected to come into force on July 1, 2024, but the document's adoption was delayed. According to the revised version, starting April 1, 2025, the Central Bank will be able to apply macroprudential limits to both mortgage and auto loans. Macroprudential limits will still not apply to mortgage loans secured by aircraft or sea and river vessels.

Under current law, macroprudential limits do not apply to loans provided to legal entities, loans to individuals for business activities, mortgage loans, and loans secured by a pledge of road vehicles.

Macroprudential limits are tools established by the Central Bank that influence the structure of unsecured consumer lending by restricting the share of high-risk loans in the total volume issued. Their goal is to reduce systemic risk in the financial system and control the growth of household debt, discouraging lending to borrowers with high debt burdens.