Only six of the 15 banks have reduced interest rates on consumer loans

Banks are reluctant to lower consumer loan rates — only six of the top 15 market players did so in June, Izvestia found.

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On average, interest rates on loans fell by less than 1 percentage point to 34%. This is despite the fact that in early June, the Central Bank unexpectedly lowered the key rate for the market, and then signaled further policy easing. In addition, financial institutions are reducing deposit rates much more actively, while loans remain virtually inaccessible.

In particular, interest rates were reduced in June at Sberbank, Gazprombank, MKB, Dom.rf Bank, Ak Bars Bank and Bank Saint Petersburg.

Banks have a number of reasons why they are in no hurry to make loans more affordable. The reduction in the key rate in June was insignificant, in fact, it was a neutral signal to the market, which limited players' expectations for further monetary policy easing. Consumer rates are also affected by the cost of risk, and today it is higher than it was a year ago, said independent expert Andrei Barkhota.

"Due to the growing risks, the deterioration of the loan portfolio quality is inevitable. In this regard, banks are not in a hurry to reduce interest rates in order to cover loan losses with a stable interest margin," the expert concluded.

Read more in the exclusive Izvestia article:

Don't let them take it: banks are reluctant to lower consumer loan rates