Russian banks show best lending rates since 2015 in H1 2021

MOSCOW, Aug 26 (PRIME) – Russian banks’ lending increased by 6.1% in nominal terms in January-June 2021, the highest since 2015, a PRIME research on Thursday.

“The Russian banking sector increased lending significantly in the first half of 2021. According to the Bank of Russia, in January-June 2021 banks’ loan portfolio grew by 6.1% in nominal terms, the largest increase for this time interval since 2015,” the study said.

According to the research, the low interest rates introduced after the central bank softened its monetary policy were the reason behind the impressive dynamics in the first half of 2021. Also, the high growth rate could have been due to intensification of concessional lending in anticipation of the end of the pandemic support measures.

Corporate lending in the first half of 2021 showed the best growth rate since 2015, both in nominal and real terms, amounting to 7.5% and 5% respectively, the research said.

Retail lending in January-June was also characterized by very high growth compared to recent years. The loan portfolio of individuals in January-June increased by 13.5%. “Thus, consumer lending growth in 2021 could not have topped the credit boom of 2012-2013, although the rapid growth in 2017-2019 was reached easily,” the research said.

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