Lending has become one of the key and at the same time one of the most controversial aspects of the development of the Russian economy. Having received some development in the era of the Russian Empire, lending, as well as the associated banking system, has undergone significant changes in the era of the command-administrative economy of the Soviet era. However, after the formal restoration of market relations in the early 1990s, the economy took several years to restore modern credit models, some of which still provoke discussion and criticism due to their imperfect nature.
Lending Development
The private banking system of Russia received an incentive to develop in the early 90s. However, over the course of several years, lending to both legal and private individuals was hampered by extremely high rates of inflation, a reduction in GDP, a massive outflow of capital abroad, weak consumer demand from the population, and other factors. Lending was elite, not a mass banking service of the 90s.
Problems
The nature of lending has acquired since the mid-2000s, when inflation has significantly decreased in the country; Mortgage and car loans have been developed. Until 2009, all sectors of credit were developing dynamically. After significantly reduced the growth rates of lending to the corporate sector significantly decreased while the growth of consumer loans remained at a high level. Both of these factors are often viewed in a negative way: low corporate credit growth slows down technological modernization of Russian companies, and high growth of microcredit leads to bad debt growth, and also stimulates a growth in the share of imports in the country's foreign trade. Some foreign rating agencies express concern that even after the 2009 crisis, the population’s credit load continues to grow several times faster than the country's GDP, and hence the real incomes of the population. So, in 2012, microcredit grew in Russia by almost 39.3%, with the economy growing by 3.4% [1] . As a result, the debt burden on household income increased from 10-11% of income in 2007–2008 to 14% in 2012 and finally reached 17% in 2013 [2] [3] . Despite this, compared with most developed and even many developing countries, the population of Russia is characterized by one of the lowest levels of the ratio of household debt to GDP — less than 13% according to data for May 2013 [4] . The latter is explained by the fact that many Russians actually received free housing from the state during the privatization of the 1990s. At the same time, the majority of citizens of capitalist-oriented countries did not have such an opportunity, and are still paying for mortgages 30-40 years ago.
Currently, the most pressing issue of Russian crediting of all directions is the relatively high interest rates on loan payments [5] [6] .
Notes
- ↑ VEDOMOSTI - Dangerous loans
- ↑ MED: the debt burden on the population of the Russian Federation reached 17% of revenues
- ↑ The debt burden on the population of the Russian Federation reached 17% of revenues, said the Ministry of Economic Development / Finance - Economic Information Agency PRIME
- ↑ VEDOMOSTI - Dangerous loans
- ↑ Improve bank metabolism
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