The expert named the possible consequences of abolishing the restrictions of the Loan Participation Rate on loans

The Central Bank (CB) of Russia has decided to abolish the limitation of the total cost of credit (TCC) for consumer loans and credits from January 1 to March 31, 2025. Natalia Bogomolova, director of ratings of financial institutions of the NRA rating service, told Izvestia on December 26 about the consequences of such a decision.

On the eve of the regulator made the relevant decision. The Central Bank added that for MFIs restrictions on the full cost of the loan will still remain in relation to short-term loans for small amounts.

"The Bank of Russia cancels the limit level of TCOP on credit cards for the I quarter for the correct calculation of TCOP by banks in the future. Temporary abolition of the marginal level of the CCP will help not to stop lending in this segment in the I quarter of 2025", - said Bogomolova.

At the same time, the expert noted that the dynamics of lending is more affected by the current regulatory measures. She recalled that the premiums to the risk coefficients for unsecured consumer lending have increased, and now banks must form reserves in full on the approved limit on the card, not on the used. According to her, all this puts pressure on banks' capital.

In addition, Bogomolova noted, the limits for borrowers who spend 50-80% of their income on debt service have been tightened.

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Earlier, on December 18, the head of the State Duma Committee on the financial market Anatoly Aksakov told Izvestia that the authorities have already agreed in principle on the introduction of a cooling-off period in the issuance of consumer loans by 2025. According to him, there is now a discussion of thresholds and suspension periods. One of the proposals: a cooling off period of four hours when issuing a loan for the amount of 50 thousand to 200 thousand rubles and for two days if the size of the loan is more than 200 thousand.