20 Nov 2013 13:20

CBR backs idea of capping credit rates for private borrowers - Nabiullina

MOSCOW. Nov 20 (Interfax) - The Central Bank of Russia (CBR) thinks it would be a good idea to cap interest rates on credits extended to private individuals, CBR chief Elvira Nabiullina said during a State Duma session.

"We support the introduction of a maximum level for interest rates on credits for private individuals. This is needed in the battle against usurious interest rates," she said.

Many countries have enacted such restrictions, she said, "because individuals are not always qualified buyers of banking services due to an insufficient level of financial expertise."

"I am for having such instruments," she said, adding that the restrictions must be done "on a market basis, on the basis of market analysis."