Russian Retail Lending Growth Slows for the First Time in 2024

In July, the growth rate of personal loans in Russia saw a decline for the first time in 2024, with the volume of new loans issued nearly five times lower than in June, according to data analyzed by Kommersant. Market participants view this as the first visible outcome of government efforts to curb the retail lending market, which has significantly contributed to inflation. The end of major government programs for subsidized mortgages and the Central Bank’s stricter requirements for banks and borrowers in the unsecured lending sector have played a key role. Notably, the Central Bank’s efforts have allowed many banks to manage the influx of loan applications more easily.