The Central Bank has taken on car lending. The head of the Central Bank, Elvira Nabiullina, stated that macroprudential limits may be introduced, which are in effect in other areas of retail lending. We explain what it is and how it will affect car buyers.
Who will be affected by the new restrictions?
The Central Bank is trying to reduce the debt burden of citizens so that they do not take out new loans in addition to the ones they already have. In addition, the new restrictions will protect banks from unreliable borrowers. The macroprudential limits proposed by Nabiullina are the maximum share of unsecured loans to individuals in the total volume of consumer loans issued by the bank.
The restrictions will affect those whose debt burden is more than 50% but less than 80%. Recall that the debt burden is an indicator reflecting the level of debt obligations of a company or individual compared to their income or assets.
What will change in the automotive market?
So far, the proposed changes are just an idea. The Central Bank has not adopted anything yet, and it is unknown whether it will. But if macroprudential limits in car lending do come into effect, then car sales will decline, and it will be difficult for buyers and dealers. Auto journalist Maxim Kadakov is sure of this.
Until the tightening measures are adopted, sales will be no worse than before – October will certainly be no less successful than September.
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