The Bank of Russia hopes to be able to regulate the mortgage market using four macroprudential limits, but would like to apply only two of them, said Evgeny Rumyantsev, director of the financial stability department of the Central Bank, at a meeting with bankers, Interfax reports on March 1.
“We plan to have four macroprudential limits, but realistically, if we had these powers today, we would only use two”, – he said. Rumyantsev further explained that the Central Bank would like to include the regulation of the issuance of mortgages for completed housing and new buildings secured by equity participation agreements.
It is these sectors of mortgage lending that cause the greatest concern at the Central Bank. At the same time, Rumyantsev added that the limits will not affect military mortgages, mortgages in regions that recently joined Russia and some loans for refinancing.
Recall that in 2023 the mortgage market grew by 35%, with about 85% of all mortgage loans issued by three banks: Sberbank, VTB and Alfa Bank.
In February 2024, a bill allowing the Central Bank to limit the issuance of mortgage loans by banks was approved in first reading.
It should be noted that in January 2024, DOM.RF General Director Vitaly Mutko announced the possibility of revising the rules to impose limits on banks that introduced commissions for developers within the framework of state-subsidized mortgage programs.
Source: Rossa Primavera
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