The consumer credit market in Russia could come to a halt by next year, following downturn in the country’s economy and reduction in banks’ lending, Home Credit and Finance Bank’s chairman Ivan Svitek said at the Reuters Russia Investment Summit.
"Next year the market could reach zero (growth) at some point due to a decline in the number of quality borrowers and careful policy by banks, which don’t want to pile up risks when the economy is stagnating," Svitek said.
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Svitek told Reuters that his bank noticed deterioration in the quality of its credit portfolio early last year and had since sharply reduced the number of loans it issues.
"The demand for loans is huge, but we have become more selective in our choice of client, we look at his job prospects and income," Svitek added.
Home Credit and Finance Bank expected its credit portfolio to grow 10% this year, in terms of the total value of loans, he revealed.
Speaking about his bank, Svitek said the bank’s financial results would "significantly improve" next year.
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By GlobalDataHe added that bank was well capitalized and had no problems with liquidity.
