Those banks that do not have the ability to use capital to issue such complete guide to buyer personas: attract, convert and retain more customers loans given the increased risk weights will reduce their share, while those that have a reserve can increase it.
Yes And that is why we believe that the Central Bank’s
arsenal of instruments should be supplemented with quantitative restrictions (limits on risky lending). This may sound scary, but many countries have them. Precisely to stop such growth rates of unsecured consumer credit.
— The bill on quantitative restrictions has been in the State Duma since spring. Why hasn’t it been adopted?
— Unfortunately, we cannot convince our colleagues in the government yet. There are some concerns. But, in our opinion, the bill, of course, needs to be adopted faster.
— If it is passed quickly and put into effect quickly, what is the why is there reluctance to use it? likelihood that you will use these powers in 2022?
We will most likely use these measures immediately
— Is there resistance from the banks too?
— From some banks, yes. Maybe they just don’t compare with the alternative: we still won’t be able to sit back and wait for the problem to resolve itself, because it won’t resolve itself. We will use the tool that we have — increasing agb directory risk weights. And banks don’t like it when risk weights increase, because the burden on capital increases.