Number of retail borrowers increases to 47 million

The rise is recorded predominantly in the group of borrowers having at least three loans (currently, such individuals number 11.2 million). This is evidence that the growth of lending is accompanied by an increase in people’s debt service-to-income (DSTI) ratios.

Households show the highest demand for credit cards: the number of unique holders of credit cards was up by three million over the year, with the total number reaching 23 million, which is the same as the number of cash loan borrowers.

People having mortgages already number more than ten million. In 2023 H1, 48% of mortgages were issued for over 25 years, compared to 30% a year before. Over January—June 2023, 39% of mortgages were issued to borrowers who will be over age 65 as of the debt maturity dates.

A mortgage borrower’s profile demonstrates rising debt burden: eight of ten people who raised mortgages in 2023 Q2 already had a consumer loan.

Presumably, about 6% of mortgage borrowers raised a consumer loan to make a down payment. The Bank of Russia will hold a discussion with banks to consider approaches to assessing such borrowers’ creditworthiness.

The expansion of lending, accompanied by the rise in borrowers’ DSTI ratios, proves that the Bank of Russia tightened the macroprudential limits and risk weight add-ons in a timely manner. These measures will contain a further increase in people’s debt burden.

More details are available in the information and analytical commentary Analysis of Retail Lending Trends Based on Credit History Bureaus’ Data for 2023 H1.