Cbank wants to tighten mortgage loans issuance at high debt burden
MOSCOW, Dec 17 (PRIME) -- Russia’s central bank wants to tighten mortgage standards for banks from July 1, 2020 by linking their transfers to the reserves to the borrower’s debt burden and the size of initial installment, the regulator said in a report on Tuesday.
“In order to maintain well-balanced growth of mortgage crediting, to raise sensitivity of the macroprudential measures to the credit risk of mortgage borrowers, and to limit the risks linked to Russians’ increasing credit burden, the central bank is considering imposition of graded markups to the mortgage risk ratios depending on the borrower’s debt burden index and the ratio of the principal amount of loan to the fair value of the subject of pledge,” the central bank said.
The step will increase the banks’ capital loading by 40%, if the mortgage portfolios are not adjusted, the regulator also said.
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