The Bank of Russia will prepare “specific proposals” in the near future to introduce a ‘payment to return’ ratio in consumer lending, Central Bank Governor Elvira Nabiullina said at the International Financial Congress.
The regulator intends to enlist the help of credit reference agencies in solving the problem of collecting information about a borrower’s cumulative payment. In particular, strategic credit reference agencies will be required to aggregate information about cumulative payments on debts. The regulator will introduce increased demands (for example, concerning data protection) on such agencies. Credit reference agencies “are the ones that are the key infrastructure for collecting information about a borrower’s cumulative debt”, Nabiullina said. “If the market is unable to reach an agreement, then we will have to follow an alternative scenario and create a single integrator”, she added.
There has long been talk about restricting the debt of borrowers. In 2016, the president instructed the government and the Central Bank to work out a mechanism and require financial organizations to check whether citizens have loan obligations when issuing them new loans.