The regulator warns banks about the risks of lowering mortgage rates
The Central Bank published a report for credit organizations, in which it advised to create and implement schemes for evaluating possible risks while issuing mortgage loans.
The Central Bank clarified that lower rates affect the increase in demand for refinancing, as bank customers want to recalculate loans in order to obtain more convenient conditions. Despite the fact that this measure leads to a decrease in the level of debt load of the population, it also reduces the interest margin of credit organizations. For this reason, there is a need to manage credit risks in banks.
In November of last year, interest rates on ruble mortgages fell to 9.19% per annum. According to forecasts of Dom.RF, this year they will drop to 8.7%.
The Central Bank said that the volume of the commission, as well as rate regulation, should cover the bank’s potential risks. Also, credit companies should consider how different scenarios in the mortgage market affect the final income of the company. The Central Bank recommended that banks with assets of more than 500 million rubles introduce new methods in the near future.