MOSCOW, October 20. /TASS/. Consumer lending growth slowed down substantially in Russia in September, according to preliminary estimates, to 1.5% compared with 2.4% in August, while corporate lending, on the contrary, sped up from 1.7% in August to 2% in September, the Bank of Russia reported.

"According to preliminary figures, consumer lending in September slowed down substantially: +1.5% compared with 2.4% in August. On the one hand, this is due to a decline in demand for loans as a result of an increase in their cost, as well as certain slowdown of consumer activity. On the other hand, banks could have reduced the supply volume due to tightening of macroprudential regulation and the necessity to observe macroprudential limits in Q3 2023. Starting September 1, 2023 risk-weight add-ons on high-risk loans have been increased <…>. This could have resulted in a decline in extensions in the segment," the regulator said.

The consumer loan portfolio of Russian banks amounted to 13.6 trillion rubles ($142 bln) in September, while the total portfolio of loans to individuals, including mortgage and car lending, reached 32.4 trillion rubles (338 bln), the Central Bank said, adding that it expects a further decline in the rates of consumer lending growth amid tightening of macroprudential limits for lenders starting October 1, 2023.

That said, the rate of corporate lending growth remained high in September by 2%, or 1.4 trillion rubles ($14.6 bln). A notable share of loans was provided to mining, oil and gas and energy companies, the Bank of Russia said.