Problems and prospects for lending in market conditions. Consumer lending: problems and prospects
Introduction
Conclusion
Bibliography
Applications
Introduction
Consumer loan occupies a special place in the overall banking system and plays an important role in a modern market economy. It serves as a means of satisfying various consumer needs of the population and helps to equalize consumer groups with different income levels.
In recent years, consumer lending has developed dynamically. The geography of consumer credit expanded, interest rates on loans decreased, etc.
Currently, much attention is paid to the problem of consumer lending due to the fact that in the global financial crisis credit institutions had to change their policies for providing consumer loans. Requirements for borrowers have become more stringent, interest rates on loans have increased, which now means practical failure in issuing loans, the issuance of loans with a zero or minimum down payment stopped, the size of down payment up to 30% of the loan amount were reduced, and by some banks they stopped altogether, mortgage programs and auto loan programs.
The purpose of this course work is the study of the organization and processing of lending individuals.
The purpose of the study led to the formulation and solution of the following tasks:
Study the essence of consumer lending;
Trace the types of consumer lending;
Disclose the technology and scheme for providing a consumer loan, as well as the procedure for its repayment;
Analyze the loan portfolio of a commercial bank, namely its quality, structure and dynamics, especially the portfolio consumer loans;
Identify problems and prospects for the development of the consumer lending system;
Develop proposals for improving the organization of consumer lending.
The object of the study was the commercial bank CJSC VTB 24.
The subject of the study is the process of lending to individuals by a commercial bank.
The first chapter examines the essence of consumer credit, provides a classification of consumer loans, and provides an analysis of the current state of consumer lending. The analytical part of the work examines the features of the organization of consumer lending, reveals the technology and scheme for providing loans to individuals, the procedure for repayment of issued loans, and also provides an analysis loan portfolio jar.
The final chapter of the course work examines the problems and prospects for the development of consumer credit in Russia.
When writing the course work, legislative and regulatory documents regulating credit relations in the territory were used Russian Federation, various kinds of reference and educational publications, as well as periodicals.
1. Theoretical basis consumer loan
1.1 Concept and essence of consumer credit
The lending process involves the transfer of money or material assets one party (lender or creditor) to the other party (borrower) on the terms of repayment, payment and urgency. A loan is a loan agreement regarding the provision of funds or inventory items under certain conditions (interest payment, repayment period) in order to secure economic activity, satisfying the needs for the things provided, etc.
Consumer credit is a form of credit and serves as a means of satisfying various consumer needs of the population. To a certain extent, it helps to equalize the consumption of population groups with different income levels.
In Russia, a consumer loan is any type of loans provided to the population, including loans for the purchase of durable goods, mortgage loans, loans for urgent needs and etc.
Unlike other loans, the object of a consumer loan can be both goods and money. Goods sold on credit, as well as those paid for through bank loans, are durable consumer goods. The subjects of the loan, on the one hand, are the creditors - commercial banks, special consumer credit institutions, shops and other institutions entitled to carry out credit activities, and on the other hand – human borrowers. But since the latter obtain the funds they need to a large extent through bank loans, in fact 90% of the total amount of consumer credit is provided by banks. A consumer loan is repaid in a one-time order or with installment payments.
A credit institution must provide lending to the population in compliance with the most important principles, i.e. the main rules that allow for the return movement of funds, namely: the principles of urgency, repayment, security, payment and differentiated. The application of all principles of lending allows us to respect the interests of both subjects of the credit transaction: the bank and the borrower.
Let's consider the meaning of the above lending principles:
The principle of urgency means that the loan must not only be repaid, but repaid within a strictly defined period, that is, the loan period is the maximum time the borrowed funds will be available to the borrower.
The principle of repayment is that at the end of the loan agreement, the borrowed money must be returned to the lender in full amount(principal) plus interest. This implies not only repayment of the loan at the end of the term, but also interim payments.
The principle of security presupposes that the borrower has legally formalized obligations that guarantee timely repayment of the loan: a collateral obligation, a guarantee agreement, a surety agreement
The payment principle means that each borrower must pay the bank a certain fee for the temporary use of funds. This principle is implemented through the mechanism of bank interest. For the bank, the repayment of the loan ensures that it covers its costs associated with the payment of interest on borrowed funds, the costs of maintaining its apparatus, and also ensures the receipt of profit to increase the lending resource funds.
Differentiation of lending means that commercial banks should not have a clear approach to the issue of issuing a loan. Loans should be provided only to those borrowers who are able to repay them on time. Therefore, differentiation of lending should be carried out on the basis of indicators of creditworthiness, which is understood as the financial condition of the borrower, which gives confidence in his ability and willingness to repay the loan within the terms specified in the contract.
1.2 Types of consumer lending
Classification of consumer loans can be carried out according to a number of criteria, including the type of borrower, types of collateral, repayment terms, repayment methods, intended use, loan objects, volume, etc. (see Table 1).
Table 1 – Classification of consumer loans
| 1. By areas of use (objects of lending) | Loans for urgent needs; Car loans; Loans for construction and purchase of housing; Loans for paid services (medicine, tourism, education); Loans for the purchase of goods. |
| 2. By subject of a credit transaction | Bank consumer loans; Loans provided to the population by trade organizations; Consumer loans credit institutions non-banking type (pawnshops, rental shops, pension funds); Consumer loans provided to borrowers directly at the enterprises and organizations in which they work. |
| 3. By provision | Unsecured loans (blank) Secured (by collateral, guarantees, sureties, insurance). |
| 4. By loan terms | Short-term (period from 1 day to 1 year); Medium-term (period from 1 year to 3-5 years); Long-term (over 3-5 years) |
| 5. Depending on the order of provision | Issued in cash, Issued by non-cash |
| 6. By delivery method | One-time loans Revolving loans (revolving, rollover) |
| 7. By repayment method | Loans repaid in one lump sum; Loans with installment payments (monthly, quarterly, etc.) |
| 8. According to the interest method | With deduction of interest at the time of loan provision; With interest paid at the time of loan repayment; With interest paid in equal installments throughout the entire period of use |
There is such a type of consumer lending as trust loan or a loan for bona fide borrowers. It is provided to citizens who have previously applied to one or another bank for a consumer loan and have conscientiously fulfilled their obligations to repay it.
The benefits of participating in such a program are obvious to both parties: the bank minimizes the risk of non-repayment of the loaned funds (since it provides them to a borrower with a known reliable reputation), and the borrower receives loan funds on the most favorable terms. This benefit usually consists of the following for the borrower:
A consumer loan is provided to the borrower at a lower rate (compared to the rate on other types of loans from this bank);
When providing loan funds, the borrower is not charged a one-time fixed fee.
1.3 The state of consumer lending in Russia
The volume of loans issued to the population in 2010 decreased by almost 50% compared to 2009. The reasons for this trend, according to analysts, are the reluctance to once again get involved with lending. If for consumers this is associated with uncertainty regarding their future financial situation, then for bankers the problem of “bad” debts and the need to create reserves for them remains relevant.
As can be seen from Table 2, a significant number of participants in this ranking experienced a decrease in the volume of unsecured loans in 2010. Thus, the volume of loans to VTB 24 (1st place) over the past year decreased by almost 28% and amounted to about 75 billion rubles. In second place is HKF-Bank with an indicator of 53.5 billion rubles, while in 2009 this bank issued unsecured loans in the amount of 79.5 billion rubles. – reduction by 33%. Alfa-Bank, which ranks third (RUB 44.6 billion), suffered smaller losses, only 14% of the 2009 volume. The volume of unsecured loans from OTP Bank, Rosselkhozbank and Rusfinance Bank, occupying fourth, fifth and sixth places, respectively, fell by less than 10%.
Table 2 - Most consumer banks in 2010 (RBC. Rating)
| № | Bank | Unsecured loans issued in 2010 (thousand rubles) | Unsecured loans issued in 2009 (thousand rubles) | Change (%) |
| 1 | VTB 24 | 74 666 135.06 | 103 453 970.03 | -27.83 |
| 2 | HKF-Bank | 53 497 019.85 | 79 512 597.97 | -32.72 |
| 3 | Alfa Bank | 44 584 436.45 | 51 908 479.65 | -14.11 |
| 4 | OTP Bank | 31 245 945.79 | 33 220 288.06 | -5.94 |
| 5 | Rosselkhozbank | 27 249 928.82 | 28 474 731.95 | -4.30 |
| 6 | Rusfinance Bank | 25 318 418.41 | 28 090 017.45 | -9.87 |
| 7 | Eastern Express | 24 745 397.00 | 14 959 629.00 | 65.41 |
| 8 | Rosbank | 12 914 192.40 | 34 602 106.06 | -62.68 |
| 9 | Sovcombank | 11 529 639.00 | 12 163 197.00 | -5.21 |
| 10 | Uralsib | 7 456 778.24 | 13 687 823.46 | -45.52 |
However, there are exceptions among the participants. For example, the volume of loans from Orient Express Bank, contrary to the general dynamics, on the contrary, increased by 65% and amounted to almost 25 billion rubles, which corresponds to seventh place. Perhaps this is the only bank among the top ten that has shown an increase in the volume of unsecured loans to the population.
In eighth place is Rosbank, whose similar figure amounted to about 13 billion rubles, against 34.6 billion rubles. a year earlier. In ninth and tenth places, respectively, are Sovcombank (RUB 11.5 billion, -5.21%) and Uralsib (RUB 7.5 billion, -45.52%).
A gradual recovery in the labor market, rising household incomes and lower rates on consumer loans led to significant growth in the first half of 2011. volumes of unsecured loans issued by banks to the population. According to RBC.Rating, the total volume of unsecured loans issued in the past six months exceeded the same figure for the first half of 2010 by more than 80%. An increase in volumes is observed among the vast majority of ranking participants, and for some this change amounts to hundreds of percent (see Table 3).
Table 3 – The most consumer banks in the 1st half of 2011 (RBC. Rating)
| № | Bank | Unsecured loans issued in the first half of 2011 (million rubles) | Unsecured loans issued in the first half of 2010 (RUB million) | Change (%) |
| 1 | VTB 24 | 51 933.65 | 33 029.19 | 57.24 |
| 2 | Home Credit | 29 537.36 | 27 061.06 | 9,15 |
| 3 | OTP Bank | 23 893.30 | 11 873.21 | 101.24 |
| 4 | Orient Express Bank | 19 538.25 | 8 648.70 | 125.91 |
| 5 | Rosbank | 16 397.91 | 4 510.51 | 263.55 |
| 6 | Trust | 12 760.92 | 1 475.63 | 764.78 |
| 7 | Rusfinance Bank | 10 717.41 | 10 988.11 | -2.46 |
| 8 | Credit Europe Bank | 8 072.43 | 2 085.51 | 287.07 |
| 9 | Renaissance Capital | 7 309.79 | 1 347.31 | 442.55 |
| 10 | Sovcombank | 7 048.44 | 3 390.38 | 107.90 |
It is worth noting that an increase in lending volumes is observed in almost all segments, from car loans to loans for the purchase of real estate (mortgages), which are still not very accessible to the majority. Positive dynamics are also observed in the area of unsecured loans. The total volume of unsecured loans issued by all participants in the ranking in the first half of 2011 amounted to more than 258 billion rubles, while for the same period last year the total volume of unsecured loans from the same banks was only 142 billion rubles. An increase of more than 80% is quite impressive, considering the fact that since the beginning of the crisis, many banks have tightened requirements for borrowers.
According to analysts, loan conditions have been tightening since the beginning of the crisis. Banks have become more conservative when assessing credit risks and, accordingly, are now conducting a more thorough analysis of the borrower’s financial condition and a more cautious forecast of its solvency.
The tightening of conditions is taking place against the backdrop of a reduction in consumer lending rates, which in turn has a positive effect on the number of clients and, accordingly, on total volumes loans issued by the bank. This policy is more than justified; banks are forced to tighten loan conditions in order to cut off “unfavorable borrowers,” but on the other hand, compete with each other for clients, and the loan rate becomes one of the tools in this fight.
In terms of the volume of unsecured loans issued in the first half of 2011, VTB24 Bank is the leader. In the past half of the year, the bank issued loans in the amount of RUB 51.9 billion, which is 57% more than in the first half of 2010. The same figure for Home Credit Bank amounted to 29.5 billion rubles, which corresponds to second place and which is also more than in 2010, but only by 9%. The volume of issued unsecured loans from OTP Bank increased more significantly (+101%) - up to 23.9 billion rubles.
In terms of the size of the portfolio of unsecured loans as of July 1, 2011, the first and second places are also occupied by VTB24 Bank (175 billion rubles) and Home Credit (61 billion rubles), but Rosbank is in third place with the volume of the portfolio of unsecured loans as of July 1, 2011, equal to 54.6 billion rubles, while the volume of unsecured loans issued in the past six months by this participant amounted to 16.4 billion rubles, which corresponds to fifth place.
2. Analysis of consumer lending at CJSC VTB 24
2.1 Organization of consumer lending
The lending process in a bank is regulated regulatory documents establishing the lending procedure. Also, the procedure for granting a loan is usually developed and set out in a credit policy manual and may cover such parties as submitting an application for a loan, processing the application, the process credit analysis, general rules maintaining credit files, exchanging credit information with other banks and suppliers.
A credit transaction involves the occurrence of an obligation on the part of the borrower to repay the corresponding debt. Specific practice shows that the presence of an obligation does not mean a guarantee and timely return. Therefore, the experience of banks has developed a mechanism for organizing loan repayment, including the use of various forms of ensuring the completeness and timeliness of the reverse movement of the loaned value.
The form of ensuring loan repayment should be understood as the legal and economic obligations of the borrower, indicating additional specific sources of loan repayment in cases of non-repayment from the main sources. They increase the guarantee of loan repayment and thereby serve as a tool for minimizing credit risk. Such obligations include:
An agreement on the pledge of material assets, property, rights and other assets that may be subject to foreclosure of a loan;
Guarantees, guarantees;
Agreement on insurance of liability for non-repayment of a loan;
Agreement on assignment in favor of a bank of claims to a third party.
The borrower, in agreement with the bank, can use one or several forms at the same time. The selected security option is fixed in the loan agreement, to which, as a rule, a corresponding document is attached (pledge agreement, surety agreement, letter of guarantee, etc.).
One of the most common forms of ensuring the repayment of a consumer loan is a guarantee. A guarantee in banking practice is used quite widely when the guarantor undertakes to be responsible to the creditor of another person for the fulfillment by the latter of his obligations in whole or in part. The guarantee agreement must be concluded in writing, and it acts as an additional agreement in relation to the main (loan) agreement.
The considered forms of ensuring loan repayment act as a secondary source of ensuring loan repayment. The primary source is the income received by the borrower. Therefore, before issuing a loan to a bank, it is important to assess the borrower's creditworthiness.
The goals and objectives of creditworthiness analysis are to determine the borrower’s ability to repay the loan in a timely manner and in full, the degree of risk that the bank is willing to assume; the size of the loan that can be provided in the given circumstances and, finally, the conditions for its provision.
When analyzing the borrower's creditworthiness, the bank takes into account many factors that make up the reputation of an individual. According to the principle of belonging to a certain field of human activity, all factors are divided into: social, professional, property, special banking and others.
An assessment of a client's creditworthiness is carried out in the bank's credit department based on information that characterizes: the client's ability to receive income sufficient to repay the loan on time; the borrower has property, which, if necessary, can serve as security for the loan, etc. Sources of information about an individual borrower can be information from the place of work, place of residence, etc.
To determine the borrower's creditworthiness, the client's income and expenses are analyzed. Income is usually determined in three areas: income from wages, from savings and capital investments, and other income. The borrower's main expenses include: payment of income and other taxes, alimony, monthly or quarterly payments on previously received loans, life and property insurance payments, utility bills, etc. Issues of confirming the amount of income and expenses are assigned to the client, who presents the necessary documents.
As a result of the work carried out, the client’s ability to make payments to repay the principal and interest is determined, and the guarantor’s ability to make them in the event of insolvency of the main borrower, and a decision is made by bank employees on the possibility of providing a loan to the borrower.
Loan approval at commercial banks usually occurs either through a credit committee or through a sequential loan approval process. In the first case, loans are approved by a credit committee, whose members are usually the managers of the bank and its credit department. In the second case, loan approval goes from the bottom up the chain from ordinary employees of the credit department to management, who has the right (in accordance with the requirements of the bank's credit policy) to final approval of the loan.
The issuance of a loan is formalized by a loan officer, the maintenance of personal accounts of borrowers is carried out by accounting employees, and operations directly related to the issuance of funds are carried out by employees of the bank’s operational department.
After the client has paid the amount stipulated by the terms of the loan agreement, the stage of repaying the debt and paying interest for using the loan begins. Individual borrowers submit documents to the bank confirming expenses and intended use of loans.
The bank must take measures to ensure repayment of the loan. Loan management is one of the main tasks of bank credit department employees. Banks monitor borrowers to make sure that their financial situation is sound and that they comply with the terms of the loan agreement; as well as to search for new opportunities for business cooperation with the client. Loan monitoring is necessary in order to identify early signs that the borrower may have difficulty repaying the loan, and to maximize the effect of the bank's corrective actions and reduce its losses.
Another aspect of the borrower’s activities is his compliance with the terms of the loan agreement. In addition to the borrower's obligation to repay the loan, the agreement may include other conditions. Failure by the borrower to comply with these conditions may lead to the need to apply various sanctions to him, such as, for example, cancellation of the contract and acceleration of the loan repayment process.
2.2 Analysis of the dynamics and structure of the loan portfolio
To study the dynamics of the loan portfolio, it is necessary to calculate the volume of the loan portfolio for the analyzed periods, as well as a number of necessary indicators, and enter the data into the table (see Table 4).
The share of the loan portfolio in total assets shows how much the bank’s activity in placing monetary resources in the form of loans is concentrated in the loan capital market. The analyzed bank has a growing dynamics in the absolute value of its loan portfolio, while the share of the portfolio in total assets is also increasing. This indicates the growing importance of lending activities for the bank and, at the same time, an increase in credit risks.
The share of the loan portfolio in working assets also has a positive trend, while the volume of working assets is growing. That is, in other words, the bank prefers to use profitable (risky) areas for investing resources.
Table 4 – Analysis of the dynamics of the loan portfolio of a commercial bank
Let's consider the growth rate of the bank's loan portfolio and total assets (see Table 5).
Table 5 – Dynamics of the loan portfolio
Analysis of Table 5 showed that the size of the loan portfolio is growing. This circumstance can be regarded as an expansion of the scope of the credit market in which the analyzed bank operates as a result of some factors. Such as, for example, reducing the requirements for completing the documentation package, increasing lending limits, lowering the minimum age limit for the borrower, etc. The growth rate of the loan portfolio is also growing.
The growth rate of the loan portfolio must be compared with the growth rate of total assets. This ratio is called the lead coefficient. This ratio shows how many times the growth of the loan portfolio outpaces the growth of assets.
Let's calculate the presented coefficient for the analyzed bank (see Table 6).
Table 6 – Dynamics of the coefficient of advance of total assets by the loan portfolio
As can be seen from the table, the value of the lead coefficient for the analyzed period increased, which indicates an increase in the importance of lending activities for the bank.
The change in the volume of the loan portfolio against the background of changes in its share in the total volume of total assets is presented more clearly in Figures 1, 2.
Analyzing the dynamics of the volume of the loan portfolio, it is necessary to identify the reasons for its increase; for this it is necessary to structure the loan portfolio by type of borrower and examine changes in each of the items (see Table 7).
Table 7 – Structure of the loan portfolio by type of borrower
An analysis of the structure showed that, in general, the bank focuses its activities on the retail lending market. So, as of 01/01/08. the share of loans granted to individuals is 70% of the total loan portfolio as of 01/01/09. – 78%, as of 01/01/10. – 62%.
The size of the portfolio of loans issued to individuals has a positive trend. In addition, this portfolio has a higher growth rate and exceeds other loan portfolios in absolute value, which once again indicates that the analyzed bank focuses its activities on the retail lending market.
2.3 Analysis of the quality of the consumer loan portfolio
After analyzing the dynamics and structure of the loan portfolio, an analysis of consumer loans issued by the bank should be carried out depending on the degree of their urgency. This study aims to identify the bank’s capabilities both in matters of financing long-term loans, and in matters of credit risk (the longer-term the loan placed by the bank, the higher the level of risk of non-repayment).
Analysis of the loan portfolio by degree of urgency must be carried out using a table.
Table 8 – Structure of the consumer loan portfolio by degree of maturity
For a more detailed analysis, it is necessary to compile a comprehensive analytical table according to the degree of urgency (Table 9).
Table 9 – Summary classification of the loan portfolio structure by degree of maturity
| Terms of placement | Credit group | 01.01.2009 | 01.01.2010 | 01.01.2011 | |||
| thousand roubles. | beat weight | thousand roubles. | beat weight | thousand roubles. | beat weight | ||
| On demand and overdraft | Short term | 3 958 211 | 2,50 | 12 315 065 | 3,70 | 19 401 892 | 5,69 |
| from 31 to 90 days | Medium term | 5 477 | 0,0035 | 2 000 | 0,0006 | 7 611 | 0,0022 |
| from 91 to 180 days | 91 242 | 0,06 | 154 161 | 0,05 | 118 007 | 0,03 | |
| from 181 to 1 year | 1 537 079 | 0,97 | 3 985 961 | 1,20 | 1 522 468 | 0,45 | |
| from 1 year to 3 years | Long-term | 18 953 115 | 11,95 | 32 762 904 | 9,85 | 30 551 714 | 8,96 |
| over 3 years | 134 070 810 | 84,53 | 283 323 452 | 85,20 | 289 335 556 | 84,86 | |
| Total | 158 615 934 | 100,00 | 332 543 543 | 100,00 | 340 937 248 | 100,00 | |
An analysis of the table showed that the prevailing item is long-term loans. The main loans are loans placed for a period of over 3 years, as well as loans placed for a period of 1 to 3 years.
Thus, the main groups of loans in the loan portfolio are long-term (see Table 10). Considering that the bank attracts long-term resources during the analyzed periods, this situation can be called a positive characterization of the bank’s resource allocation policy.
On the one hand, long-term placements positively characterize the bank, since the formation of a long-term base is typical for large and reliable banks with a positive reputation in the market. On the other hand, long-term placements are the most risky, since there is a high probability of default by the borrower, and, consequently, the probability of non-repayment of the loan.
Table 10 – Classification of the loan portfolio by degree of maturity
The last stage of loan portfolio analysis is the risk analysis of the loan portfolio. The loan portfolio is assessed by risk level using four main ratios:
Coverage ratio;
Ratio of overdue payments on the principal debt;
Non-return rate;
Collateral ratio.
Let's calculate the presented coefficients and enter the data into tables.
Table 11 – Calculation of the coverage ratio of the consumer loan portfolio
As can be seen from the table, the coverage ratio is growing. The reason for this is the fact that the growth rate of reserves is higher than the growth rate of the loan portfolio. This phenomenon is a negative side of the bank's activities.
Table 12 – Calculation of the overdue payment ratio of the consumer loan portfolio
The overdue payment ratio also has a growing trend, which indicates the bank’s ineffective policy in terms of supporting a loan transaction and is a negative characteristic for the bank.
Collateral and non-repayment of principal ratios cannot be calculated from a portfolio of consumer loans issued by a bank. In view of this, we will calculate these coefficients for the total loan portfolio of the analyzed bank.
Collateral ratio of the analyzed bank as of 01/01/09. had a value of 3.28; as of 01/01/10 – 2.38. That is, this coefficient has a negative trend, which is a negative characteristic of the bank’s activities.
Table 13 – Calculation of the loan portfolio collateral ratio
To analyze the composition of the collateral accepted by the bank and its structure, the following table should be generated (see Table 14).
Table 14 – Classification of types of loan repayment collateral
Table 15 – Calculation of the non-repayment ratio of the principal amount of debt for the total loan portfolio
The non-repayment ratio of the principal amount decreased during the analyzed periods. This happened due to the fact that the growth rate of the loan portfolio exceeded the growth rate of the written-off debt (see Table 16).
Table 16 – Dynamics of written off debt
After analyzing these ratios, we can draw conclusions about the total banking risk. So, if the coverage ratios and overdue payments increase their values in dynamics, then this indicates an increase in the credit risk of the analyzed bank.
At the same time, the collateral ratio decreases, which also indicates the need for control by the bank and the implementation of various measures to maintain the level of risk at a sufficient level.
consumer loan
3. Problems and prospects for the development of consumer credit
Currently, our country is experiencing rapid development of the consumer lending market. The volume of loans provided to individuals continues to increase, despite the fact that many credit institutions are trying in every possible way to conceal the real cost of the loan from the potential borrower at the stage of completing the loan application. Banks, when advertising their loan products, are silent or do not fully disclose information about the actual amounts interest rates fees charged for using the loan, commissions and other hidden additional payments on the loan.
Statistics show that most consumers make hasty decisions when purchasing goods in installments. And this is a very serious problem. At the same time, Russians do not study lending conditions in detail enough, which they later regret, because in the process of servicing the loan, they “encounter pitfalls” of additional payments and the terms of the loan agreement.
If the borrower tries to carefully read the text of the loan agreement, he will be able to find relevant clauses printed in small print that the bank representatives did not draw the client’s attention to when applying for the loan. We can safely say that hiding the real cost of a loan by hiding additional payments is a kind of trick used to attract customers.
Thus, one of the most important problems in consumer lending is that a potential borrower is not always able to independently carefully study and comprehend the terms of the loan agreement.
Instead of applying for an express loan, say, at 10% per annum plus hidden additional payments (the result is almost 50% of a loan taken for a year), it is much more profitable to contact a bank that offers 20% per annum and does not require any additional payments . As a rule, the client chooses lower declared interest (10% per annum) and will apply for a loan directly at the point of sale, ultimately taking advantage of the worst offer.
Many credit institutions introduce their clients to the details of the loan agreement only after the loan has been issued. Such customers are unlikely to reuse low percentage and the ability to quickly obtain a loan. This phenomenon, naturally, undermines public confidence in credit institutions.
For a comprehensive objective analysis, it is necessary to perform additional mathematical calculations, because Currently, the loan interest rate announced in advertising is losing its role as a guide for potential borrowers. As a result, banks leave clients alone with aggressive advertising for consumer lending, which cannot be quickly understood by a person who does not have a lot of free time and good mathematical abilities.
In addition, an equally important problem is that the phenomenon of unfair competition is currently observed in the personal lending market, i.e. banks offering loans to the population on more favorable terms lose potential clients due to unscrupulous competitors who provide biased advertising information that does not disclose the real cost of the loan product.
For now, commercial banks have the opportunity to dictate their terms to consumers and set high interest rates. But soon, competitiveness, a tough fight for each client, and the very opportunity to stay and develop in the retail lending market will depend on the bank’s ability to set its own pricing policy, and therefore, the ability to work with problem loans.
Another very important problem in consumer lending is the growing share of loan defaults. Already, according to official statistics alone, the share of problem loans in banks’ portfolios averages 1.3%. According to unofficial data, the real level of problem debt in some banks reaches 5-6% of the loan portfolio. It should be noted that these indicators do not apply to mortgage lending.
One of the main reasons for this level of problem debt (quite high) is that the improvement of risk assessment methods and systems in Russian banks does not keep pace with the development of the rapidly growing market. Therefore, banks often choose the following “way of dealing” with problem debts - the existing and expected default rates on loans cover the very high interest rates, commissions and tariffs on these products.
To avoid a brewing crisis of mistrust due to a lack of transparency of lending conditions, potential borrowers must understand the total amount it will cost them to service the loan, and credit institutions at the stage of completing a loan application are obliged to inform clients about all related loan conditions, lump sum payments and periodic fees charged for billing periods.
Regarding problem debt, you can apply several options for organizing work with it:
1. Creation of a separate division in the bank responsible for working with problem debts, or the creation of a “subsidiary” company at the bank - a collection agency dealing only with the bank’s problem debts.
2. Transfer of debts for collection to non-specialized companies.
3. Transfer of problem debt for collection to independent collection agencies, specializing in working with problem loans.
As for increasing profitability in consumer lending, in this case we are talking about reducing a number of risks, reducing losses due to ineffective operations and ineffective actions. There are several ways to reduce losses in consumer lending. First of all, this is, of course, reducing the risk when issuing a loan, i.e. optimization of decision-making on the applicant. Secondly, it is the optimization of work with bad debts that arise in any bank. And this is support for existing borrowers (i.e., how to reduce risks in the process when the debt has already been issued).
To solve these problems, the scoring system or issuance policy can be tightened, i.e. conservative credit policy. It provides a high-quality loan portfolio. On the other hand, it is possible to expand the market for issuing loans, but then the risk portfolio increases. It should be noted that with both types of policies the situation is only partially monitored. It is known that in the process of consumer lending, about 80% of the main losses are losses from obvious fraud, but 20% (a fairly large percentage) are losses due to various circumstances. For a conservative credit policy, the main task is comparative analysis input stream and the existing base (to understand who else from the input stream can be attracted). First of all, this is an expert analysis. Using various methods, the flow is analyzed and conclusions are drawn by experts.
The FAS is fighting the problem of unfair competition and violations of the law on the protection of competition in the financial services market. This service identifies unscrupulous financial institutions that hide or biasedly inform potential borrowers about the size of real interest rates for using a loan, commissions and other hidden additional payments.
Conclusion
Consumer lending is one of the main activities of banks. Consumer loan as a source additional income bank, is also one of the most reliable and secured, as it acts as a secured loan or is secured by a guarantee.
A consumer loan is issued on the same principles of urgency, payment, repayment, security, differentiation and targeted nature as other loans, but these principles are manifested in this lending in a special way.
The main differences between a consumer loan and other types of loans are as follows: the purpose of obtaining a loan is to satisfy the needs for consumer goods; It is difficult to assess the borrower’s creditworthiness (often the decision to issue a loan is made based on the intuition of the loan officer); The loan size is usually small.
The main principle of interaction between the bank and the client at the present stage is an individual approach, all loans are issued on special, individual conditions.
Currently, consumer credit has gained confidence at a very rapid pace and has become widespread in our country. The lending market in the Russian Federation is already developing at an accelerated pace. Gradually, consumer lending is becoming one of the most dynamic areas of development of the banking sector, which is primarily due to the need of banks for new profitable loan products. Many banks, including those with 100% foreign participation, now intend to master this type of activity. Recently, the retail market banking services has become the main hobby of Russian banks.
But along with tempting prospects, there are a large number of problems associated with consumer lending.
The problems of the Russian credit market relate, first of all, to the legal side: legislatively enshrined protection of the rights of consumers of credit services, liability of both parties in case of violation of the loan agreement, and the presence of an established system of credit bureaus for collecting information about borrowers. Clear specification regulatory framework is protection for both the lender and the buyer from force majeure circumstances caused by the conscious or forced evasion of a transaction participant from fulfilling its obligations under a consumer loan agreement. Effective economic legislation in such cases quickly and with minimal costs in court protects the financial interests of the injured party.
The role of consumer credit in development national economy is great, it helps improve the lives of the population who have available funds and a desire to purchase something, knowing in advance that they have a constant income that will be enough to repay the loan.
This is what the situation looks like in a country with a stable economy and confidence in the future, but in the context of the global crisis, the question arises not only of obtaining new loans and improving living conditions, but also of returning loans for goods already purchased, since the stability of income is called into question. Thus, credit can become both an assistant in improving the living standards of the population, and a destroyer, which will make life in times of crisis even more difficult and even unbearable.
List of used literature
1. Civil Code of the Russian Federation. Part two. No. 14-FZ dated January 26, 1996 [ Legal system Consultant Plus, ed. dated July 17, 2009]
2. the federal law“On banks and banking activities” dated December 2, 1990. No. 395-1 [Legal system Consultant Plus, ed. dated July 23, 2010]
3. Federal Law “On Credit Histories” dated December 30, 2004 No. 218-FZ [Legal system Consultant Plus, ed. dated July 24, 2007]
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5. Bakhtin D.V. Principles of a systematic methodology for assessing indicators to determine the borrower’s creditworthiness // Finance and Credit. – 2009
6. Bonner, E.A. Bank lending – M.: Gorodets, 2009. – 160 p.
7. Demin, Yu. All about loans. Clear and simple / Yu. Demin. – St. Petersburg: Peter, 2007. – 208 p.
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13. Efimova, M.S. All about credit for the population. – M.: Omega – L, 2009. – 176
14. Krupnov, Yu.S. Bank consumer credit - M.: Central Bank of the Russian Federation, Research Institute, 2009, No. 4.
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16. Lavrushin O.I. Banking: Textbook / O.I. Lavrushin, I.D. – 6th ed. – M.: KNORUS, 2009.
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18. Markova O.M. Commercial banks and their operations: Tutorial/ O.M. Makarova. – M.: Banks and exchanges, UNITY, 2009.
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21. Nevolina E.V. On assessing the creditworthiness of borrowers // Money and Credit. – 2009, No. 10.
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23. Nosova T.P. Modern system lending to individuals / T.P. Nosova, A.V. Semin. – M.: Finance and Credit, 2007.
24. Orlova, N.V. Consumer credit: current issues, sample documents. – M.: Wright, 2007. – 177 p.
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Annex 1
Turnover sheet of accounts accounting credit organization
Name of credit institution: VTB 24 Bank (closed joint stock company)
Registration number: 1623
| Account number | Account name | 01.01.2009 | 01.01.2010 | 01.01.2011 | |
| 10207 | Authorized capital of credit institutions created in the form of a joint stock company | 30007812 | 33567652 | 50636514 | |
| 10501 | Own shares purchased from shareholders | 476498 | 476498 | 476498 | |
| 10601 | Increase in property value during revaluation | 31843 | 7724 | 7724 | |
| 10602 | Share premium | 11370585 | 14528162 | 22625380 | |
| 10701 | Reserve fund | 633639 | 673098 | 888535 | |
| 10702 | Special Purpose Funds | 51071 | 0 | 0 | |
| 10703 | Savings funds | 1585733 | 0 | 0 | |
| 10801 | retained earnings | 0 | 1660924 | 1660959 | |
| 20202 | Cash desk of credit organizations | 10061597 | 23224592 | 20187993 | |
| 20203 | Checks (including traveler's checks), nominal cost which are indicated in foreign currency | 1094 | 4650 | 3253 | |
| 20207 | Cash in operating cash desks located outside the premises of credit institutions | 0 | 0 | 13359 | |
| 20208 | Cash in ATMs | 4170815 | 9684189 | 16990706 | |
| 20209 | Cash on the way | 1295096 | 3485511 | 2373878 | |
| 20210 | Checks (including traveler's checks), the nominal value of which is indicated in foreign currency, are in transit | 6797 | 3209 | 1512 | |
| 20302 | Gold | 98 | 123 | 159 | |
| 20308 | Precious metals in coins and commemorative medals | 2 | 1 | 887 | |
| 30102 | Correspondent accounts of credit institutions with the Bank of Russia | 4096399 | 5268213 | 8077014 | |
| 30109 | Correspondent accounts of correspondent credit institutions | 678137 | 485983 | 541778 | |
| 30110 | Correspondent accounts with correspondent credit institutions | 2317996 | 46750624 | 1113232 | |
| 30111 | Correspondent accounts of non-resident banks | 89 | 107 | 110 | |
| 30114 | Correspondent accounts in non-resident banks | 1529757 | 6054672 | 2220854 | |
| 30119 | Correspondent accounts in non-resident banks in precious metals | 1 | 1 | 1 | |
| 30126 | Reserves for possible losses | 1 | 0 | 18 | |
| 30202 | Mandatory reserves of credit institutions for accounts in the currency of the Russian Federation transferred to the Bank of Russia | 2132622 | 367848 | 2109899 | |
| 30204 | Required reserves of credit institutions for accounts in foreign currency transferred to the Bank of Russia | 1237142 | 217288 | 2176295 | |
| 30210 | Accounts of credit institutions (branches) by cash service structural divisions | 35450 | 45000 | 177300 | |
| 30213 | Accounts of settlement participants in settlement non-bank credit institutions | 34376 | 2424 | 1151 | |
| 30220 | Client funds for unfinished settlement transactions | 27324 | 304 | 1029 | |
| 30221 | 11081 | 0 | 20000 | ||
| 30222 | Unfinished settlements of a credit institution | 3045 | 1018 | 129 | |
| 30226 | Reserves for possible losses | 0 | 7417 | 3752 | |
| 30232 | 374540 | 798837 | 1016997 | ||
| 30233 | Unfinished settlements for transactions made using payment cards | 507808 | 255028 | 517097 | |
| 30301 | 92813920 | 168292695 | 244087221 | ||
| 30302 | Settlements with branches located in the Russian Federation | 92813920 | 168292695 | 244087221 | |
| 30305 | Settlements between divisions of one credit institution for received resources | 60931081 | 66162698 | 22656368 | |
| 30306 | Settlements between divisions of one credit institution for transferred resources | 60931081 | 66162698 | 22656368 | |
| 30402 | Accounts of participants of the RC ORTS | 1050359 | 1102655 | 1615091 | |
| 30406 | Funds of participants of the RC Securities Deposit Center deposited in the settlement center to guarantee settlements for transactions in the sectors of the Securities Market System | 333047 | 0 | 0 | |
| 30601 | Client funds for brokerage operations with securities and other financial assets | 3107144 | 2342202 | 6192238 | |
| 30603 | Settlements with issuers for servicing securities issues | 44880 | 6 | 0 | |
| 30606 | Funds of non-resident clients for brokerage operations with securities and other financial assets | 339844 | 6692 | 68720 | |
| 31203 | loans for a period from 8 to 30 days | 0 | 10000000 | 0 | |
| 31205 | loans for a period from 91 to 180 days | 0 | 45000000 | 0 | |
| 31206 | loans for a period from 181 days to 1 year | 0 | 20000000 | 0 | |
| 31304 | for a period of 8 to 30 days | 2573000 | 3608000 | 15885000 | |
| 31308 | for a period from 1 year to 3 years | 5000000 | 25005910 | 2854302 | |
| 31309 | for a period over 3 years | 0 | 17949018 | 18036520 | |
| 31310 | poste restante | 0 | 294 | 302 | |
| 31405 | for a period from 31 to 90 days | 0 | 137000 | 0 | |
| 31407 | for a period from 181 days to 1 year | 0 | 632488 | 534320 | |
| 31408 | for a period from 1 year to 3 years | 16102206 | 6803849 | 11496540 | |
| 31409 | for a period over 3 years | 7624780 | 8088251 | 11995567 | |
| 31501 | poste restante | 0 | 9 | 13 | |
| 31504 | for a period of 8 to 30 days | 350000 | 0 | 0 | |
| 31506 | for a period from 91 to 180 days | 2454620 | 0 | 0 | |
| 31507 | for a period from 181 days to 1 year | 982 | 0 | 0 | |
| 31508 | for a period from 1 year to 3 years | 7385754 | 0 | 0 | |
| 31608 | for a period from 1 year to 3 years | 4897639 | 0 | 0 | |
| 31609 | for a period over 3 years | 4020000 | 0 | 0 | |
| 32004 | for a period of 8 to 30 days | 0 | 28328600 | 0 | |
| 32006 | for a period from 91 to 180 days | 0 | 65224 | 0 | |
| 32007 | for a period from 181 days to 1 year | 0 | 0 | 74946910 | |
| 32009 | for a period from 1 year to 3 years | 0 | 0 | 55744205 | |
| 32010 | for a period over 3 years | 3500 | 3500 | 3500 | |
| 32011 | poste restante | 0 | 8653 | 0 | |
| 32104 | for a period of 8 to 30 days | 0 | 0 | 768686 | |
| 32108 | for a period from 1 year to 3 years | 0 | 2644236 | 0 | |
| 32109 | for a period over 3 years | 0 | 2203530 | 0 | |
| 32201 | poste restante | 7625 | 441 | 454 | |
| 32204 | for a period of 8 to 30 days | 7363860 | 0 | 0 | |
| 32211 | Reserves for possible losses | 0 | 0 | 5 | |
| 32301 | poste restante | 2455 | 2938 | 99503 | |
| 32303 | for a period of 2 to 7 days | 13402 | 1880 | 3327 | |
| 32304 | for a period of 8 to 30 days | 916052 | 0 | 0 | |
| 32308 | for a period from 1 year to 3 years | 4418316 | 0 | 0 | |
| 32309 | for a period over 3 years | 3681930 | 0 | 0 | |
| 32801 | Upcoming receipts from operations related to the provision (placement) of interbank loans, deposits and other placed funds | 45585 | 0 | 0 | |
| 32802 | Upcoming payments for operations related to raising funds for interbank loans, deposits and other funds raised | 406748 | 0 | 0 | |
| 32901 | Other funds received from the Bank of Russia | 0 | 13103245 | 12270076 | |
| 40302 | Funds received at the temporary disposal of budgetary institutions | 88 | 4082 | 0 | |
| 40404 | Territorial compulsory health insurance funds | 9875 | 40853 | 34098 | |
| 40502 | Commercial organizations | 502827 | 380151 | 650612 | |
| 40503 | Non-profit organizations | 15512 | 23078 | 2546 | |
| 40602 | Commercial organizations | 38084 | 108654 | 280771 | |
| 40603 | Non-profit organizations | 15084 | 17791 | 30602 | |
| 40701 | Financial organizations | 1187299 | 775477 | 1527871 | |
| 40702 | Commercial organizations | 18562296 | 28365802 | 31895097 | |
| 40703 | Non-profit organizations | 522579 | 1125011 | 1861687 | |
| 40802 | Individuals - individual entrepreneurs | 1600993 | 1962923 | 2426058 | |
| 40804 | Legal entities and individual non-resident entrepreneurs - type T accounts | 25 | 25 | 24 | |
| 40805 | Legal entities and individual non-resident entrepreneurs - type I accounts | 9 | 9 | 8 | |
| 40807 | Non-resident legal entities | 551891 | 1152942 | 1110680 | |
| 40813 | Non-resident individuals - F type accounts | 58 | 58 | 58 | |
| 40814 | Non-resident legal entities and individuals - type K accounts (convertible) | 120 | 121 | 121 | |
| 40815 | Non-resident legal entities and individuals - type N accounts (non-convertible) | 1 | 1 | 1 | |
| 40817 | Individuals | 27237461 | 42905403 | 67415905 | |
| 40818 | Special bank accounts of non-residents in the currency of the Russian Federation | 1812 | 8 | 3 | |
| 40820 | Accounts of non-resident individuals | 412849 | 947294 | 1219788 | |
| 40901 | Letters of credit for payment | 103290 | 52847 | 112916 | |
| 40905 | Current accounts of commissioners and outstanding transfers | 11146 | 15096 | 14514 | |
| 40909 | Transfers to the Russian Federation | 3763 | 3499 | 3276 | |
| 40910 | Transfers to the Russian Federation to non-residents | 1 | 0 | 0 | |
| 40911 | Transit accounts | 45294 | 37295 | 36060 | |
| 40912 | Transfers from the Russian Federation | 1555 | 465 | 242 | |
| 40913 | Transfers from the Russian Federation by non-residents | 2607 | 0 | 0 | |
| 41504 | for a period from 91 to 180 days | 50 | 0 | 0 | |
| 41604 | for a period from 91 to 180 days | 0 | 0 | 6000000 | |
| 41705 | for a period from 181 days to 1 year | 0 | 10100 | 0 | |
| 41706 | for a period from 1 year to 3 years | 5000 | 0 | 0 | |
| 41803 | for a period from 31 to 90 days | 0 | 219000 | 0 | |
| 41804 | for a period from 91 to 180 days | 0 | 0 | 3000 | |
| 41805 | for a period from 181 days to 1 year | 0 | 2000 | 0 | |
| 41806 | for a period from 1 year to 3 years | 0 | 1500 | 1500 | |
| 41903 | for a period from 31 to 90 days | 0 | 0 | 1000 | |
| 41905 | for a period from 181 days to 1 year | 0 | 1228 | 1000 | |
| 41906 | for a period from 1 year to 3 years | 2098 | 9493 | 7573 | |
| 42001 | poste restante | 4 | 0 | 0 | |
| 42002 | for up to 30 days | 112000 | 0 | 625000 | |
| 42003 | for a period from 31 to 90 days | 1168100 | 338810 | 196777 | |
| 42004 | for a period from 91 to 180 days | 5000 | 390926 | 718408 | |
| 42005 | for a period from 181 days to 1 year | 412703 | 771304 | 624139 | |
| 42006 | for a period from 1 year to 3 years | 120343 | 53701 | 2377161 | |
| 42101 | poste restante | 33 | 4 | 0 | |
| 42102 | for up to 30 days | 1758407 | 66001 | 252963 | |
| 42103 | for a period from 31 to 90 days | 173279 | 460330 | 3125693 | |
| 42104 | for a period from 91 to 180 days | 106121 | 457676 | 620863 | |
| 42105 | for a period from 181 days to 1 year | 1177962 | 2343437 | 4181564 | |
| 42106 | for a period from 1 year to 3 years | 56880 | 48410 | 258858 | |
| 42107 | for a period over 3 years | 4341 | 6034 | 0 | |
| 42201 | poste restante | 0 | 0 | 2000000 | |
| 42203 | for a period from 31 to 90 days | 1500 | 18003 | 1046000 | |
| 42204 | for a period from 91 to 180 days | 11500 | 5446 | 38630 | |
| 42205 | for a period from 181 days to 1 year | 17000 | 13922 | 68919 | |
| 42206 | for a period from 1 year to 3 years | 3081 | 4101800 | 46975 | |
| 42207 | for a period over 3 years | 1602 | 10945 | 0 | |
| 42301 | Demand deposits | 578922 | 605355 | 974275 | |
| 42303 | 775097 | 6732384 | 4504794 | ||
| 42304 | 532849 | 1710295 | 10112715 | ||
| 42305 | 7036121 | 16049715 | 42322891 | ||
| 42306 | 134479169 | 205288836 | 235310344 | ||
| 42307 | Deposits for a period over 3 years | 114678 | 26294776 | 66038025 | |
| 42309 | 21839 | 37338 | 41578 | ||
| 42313 | Other raised funds for a period from 181 days to 1 year | 1 | 0 | 0 | |
| 42502 | for up to 30 days | 0 | 0 | 50000 | |
| 42503 | for a period from 31 to 90 days | 0 | 29380 | 0 | |
| 42506 | for a period from 1 year to 3 years | 170000 | 0 | 0 | |
| 42507 | for a period over 3 years | 46 | 46 | 46 | |
| 42601 | Demand deposits | 17156 | 18503 | 20806 | |
| 42603 | Deposits for a period of 31 to 90 days | 17348 | 88948 | 82102 | |
| 42604 | Deposits for a period from 91 to 180 days | 19603 | 30061 | 98471 | |
| 42605 | Deposits for a period from 181 days to 1 year | 138215 | 277785 | 445426 | |
| 42606 | Deposits for a period from 1 year to 3 years | 2821893 | 3453940 | 3929182 | |
| 42607 | Deposits for a period over 3 years | 1320 | 323420 | 1080396 | |
| 42609 | Other funds raised on demand | 485 | 617 | 619 | |
| 43401 | poste restante | 2 | 0 | 0 | |
| 43701 | poste restante | 7 | 14 | 9 | |
| 43705 | for a period from 181 days to 1 year | 9 | 5 | 5 | |
| 43801 | poste restante | 2212 | 2259 | 617 | |
| 43901 | poste restante | 1 | 0 | 3 | |
| 44001 | poste restante | 12 | 15 | 17 | |
| 44006 | for a period from 1 year to 3 years | 12273100 | 14690200 | 0 | |
| 44007 | for a period over 3 years | 490924 | 0 | 0 | |
| 44205 | for a period from 31 to 90 days | 797500 | 0 | 0 | |
| 44206 | for a period from 91 to 180 days | 91498 | 80000 | 0 | |
| 44207 | for a period from 181 days to 1 year | 1042992 | 0 | 0 | |
| 44208 | for a period from 1 year to 3 years | 25000 | 0 | 1756 | |
| 44215 | Reserves for possible losses | 0 | 0 | 10 | |
| 44605 | for a period from 91 to 180 days | 150000 | 0 | 0 | |
| 44607 | for a period from 1 year to 3 years | 466500 | 0 | 0 | |
| 44608 | for a period over 3 years | 30000 | 30000 | 0 | |
| 44615 | Reserves for possible losses | 4320 | 0 | 0 | |
| 44904 | for a period from 31 to 90 days | 4009 | 0 | 0 | |
| 44906 | for a period from 181 days to 1 year | 197186 | 0 | 133 | |
| 44907 | for a period from 1 year to 3 years | 1893020 | 705752 | 1279 | |
| 44915 | Reserves for possible losses | 7323 | 167681 | 140 | |
| 45007 | for a period from 1 year to 3 years | 0 | 53555 | 29960 | |
| 45015 | Reserves for possible losses | 0 | 11 | 168 | |
| 45101 | 1349118 | 1737 | 0 | ||
| 45103 | for up to 30 days | 0 | 0 | 3000000 | |
| 45107 | for a period from 1 year to 3 years | 122909 | 35791 | 0 | |
| 45108 | for a period over 3 years | 9421 | 8424 | 844107 | |
| 45115 | Reserves for possible losses | 7531 | 4 | 8426 | |
| 45201 | A loan provided when there is insufficient funds in the current (current) account (overdraft) | 2699101 | 1947200 | 594818 | |
| 45203 | for up to 30 days | 3200000 | 0 | 0 | |
| 45204 | for a period from 31 to 90 days | 524700 | 79400 | 88096 | |
| 45205 | for a period from 91 to 180 days | 543457 | 822283 | 628646 | |
| 45206 | for a period from 181 days to 1 year | 8124619 | 3405144 | 1275786 | |
| 45207 | for a period from 1 year to 3 years | 16172397 | 15673108 | 14829848 | |
| 45208 | for a period over 3 years | 14354263 | 28805350 | 27732954 | |
| 45215 | Reserves for possible losses | 182939 | 1335664 | 5975230 | |
| 45301 | A loan provided when there is insufficient funds in the current (current) account (overdraft) | 0 | 1863 | 446 | |
| 45305 | for a period from 91 to 180 days | 1800 | 4100 | 1600 | |
| 45306 | for a period from 181 days to 1 year | 1322 | 1528 | 351 | |
| 45307 | for a period from 1 year to 3 years | 39783 | 47723 | 31185 | |
| 45308 | for a period over 3 years | 63968 | 90983 | 78114 | |
| 45315 | Reserves for possible losses | 338 | 522 | 468 | |
| 45401 | A loan provided when there is insufficient funds in the current (current) account (overdraft) | 335249 | 292609 | 152336 | |
| 45404 | for a period from 31 to 90 days | 5477 | 2000 | 7600 | |
| 45405 | for a period from 91 to 180 days | 91242 | 139526 | 116932 | |
| 45406 | for a period from 181 days to 1 year | 535628 | 652508 | 399287 | |
| 45407 | for a period from 1 year to 3 years | 7475644 | 7757019 | 5312273 | |
| 45408 | for a period over 3 years | 7536436 | 18369901 | 17727064 | |
| 45415 | Reserves for possible losses | 99697 | 557319 | 1708504 | |
| 45503 | for a period from 31 to 90 days | 0 | 0 | 11 | |
| 45504 | for a period from 91 to 180 days | 0 | 14635 | 1075 | |
| 45505 | for a period from 181 days to 1 year | 999249 | 3333453 | 1123181 | |
| 45506 | for a period from 1 year to 3 years | 11475345 | 25003287 | 25238616 | |
| 45507 | for a period over 3 years | 125531228 | 263574159 | 270500218 | |
| 45509 | 3622611 | 12018544 | 19231416 | ||
| 45515 | Reserves for possible losses | 3092136 | 8092141 | 13356683 | |
| 45606 | for a period over 3 years | 0 | 6027536 | 6152390 | |
| 45615 | Reserves for possible losses | 0 | 0 | 61524 | |
| 45704 | for a period from 181 days to 1 year | 2202 | 0 | 0 | |
| 45705 | for a period from 1 year to 3 years | 2126 | 2598 | 825 | |
| 45706 | for a period over 3 years | 1003146 | 1379392 | 1108274 | |
| 45708 | Loan provided when there is insufficient funds in the deposit account (overdraft) | 351 | 3912 | 18140 | |
| 45715 | Reserves for possible losses | 12027 | 13830 | 33469 | |
| 45809 | 0 | 0 | 867 | ||
| 45810 | 0 | 21000 | 0 | ||
| 45811 | 0 | 393 | 393 | ||
| 45812 | 749648 | 1553499 | 5903573 | ||
| 45813 | 23 | 67 | 601 | ||
| 45814 | 116805 | 494316 | 2210983 | ||
| 45815 | Citizens | 882246 | 3067650 | 8275665 | |
| 45817 | 4290 | 11156 | 25284 | ||
| 45818 | Reserves for possible losses | 1278361 | 3845604 | 13683924 | |
| 45909 | Commercial organizations that are state (except federal) property | 0 | 0 | 45 | |
| 45910 | Non-profit organizations that are state (except federal) property | 0 | 5002 | 4208 | |
| 45911 | Non-state financial organizations | 0 | 12 | 12 | |
| 45912 | Non-governmental commercial organizations | 776 | 53253 | 241068 | |
| 45913 | Non-governmental non-profit organizations | 0 | 17 | 18 | |
| 45914 | For individuals - individual entrepreneurs | 0 | 24605 | 92974 | |
| 45915 | Citizens | 0 | 761215 | 1434078 | |
| 45917 | Non-resident individuals | 0 | 719 | 3611 | |
| 45918 | Reserves for possible losses | 0 | 446829 | 1166117 | |
| 47002 | for up to 30 days | 0 | 567483 | 21497170 | |
| 47401 | Settlements with clients for factoring and forfaiting transactions | 201517 | 7156 | 20 | |
| 47404 | Settlements with currency and stock exchanges | 853485 | 620350 | 3440774 | |
| 47405 | Settlements with clients for the purchase and sale of foreign currency | 790 | 11400 | 19172 | |
| 47407 | 34329 | 0 | 403482 | ||
| 47408 | Settlements for conversion transactions and forward transactions | 9634 | 0 | 0 | |
| 47409 | Liabilities under letters of credit for foreign transactions | 13553 | 44842 | 36052 | |
| 47410 | Requirements for letters of credit for foreign transactions | 0 | 44842 | 28159 | |
| 47411 | Accrued interest on bank accounts and attracted funds from individuals | 904156 | 1574588 | 3200734 | |
| 47415 | Requirements for payments for purchased and sold commemorative coins | 2183 | 12866 | 90180 | |
| 47416 | Amounts received to correspondent accounts, pending clarification | 169031 | 285203 | 246557 | |
| 47417 | Amounts written off from correspondent accounts, pending clarification | 12 | 0 | 9 | |
| 47422 | Liabilities for other transactions | 268418 | 346634 | 354534 | |
| 47423 | Requirements for other transactions | 54760 | 245239 | 2813104 | |
| 47425 | Reserves for possible losses | 94682 | 902229 | 979082 | |
| 47426 | Obligations to pay interest | 487074 | 987178 | 295650 | |
| 47427 | Requirements for receiving interest | 100204 | 2560760 | 8544502 | |
| 47501 | Upcoming receipts from operations related to the provision (placement) of funds to clients | 55394 | 0 | 0 | |
| 47502 | Upcoming payments for operations related to raising funds from clients | 984482 | 0 | 0 | |
| 47801 | Rights of claim under agreements for the provision (placement) of funds, the fulfillment of obligations under which is secured by a mortgage | 13375221 | 31034838 | 30244258 | |
| 47802 | Rights of claim under agreements for the provision (placement) of funds | 24058182 | 10637890 | 7107856 | |
| 47804 | Reserves for possible losses | 477650 | 1246170 | 3440233 | |
| 50104 | Debt obligations of the Russian Federation | 5397300 | 0 | 0 | |
| 50105 | Debt obligations of the constituent entities of the Russian Federation and local governments | 233566 | 187994 | 114121 | |
| 50106 | 5627252 | 5697031 | 31427919 | ||
| 50107 | 12159601 | 2476776 | 4989467 | ||
| 50110 | Other debt obligations of non-residents | 0 | 9352123 | 0 | |
| 50118 | 0 | 11138359 | 16325311 | ||
| 50120 | Revaluation of securities - negative differences | 0 | 311655 | 21722 | |
| 50121 | Revaluation of securities - positive differences | 0 | 263276 | 616114 | |
| 50307 | Debt obligations of credit institutions | 0 | 17875 | 1649498 | |
| 50308 | Other debt obligations | 0 | 2384019 | 5296343 | |
| 50318 | Debt obligations transferred without derecognition | 0 | 3935647 | 0 | |
| 50319 | Reserves for possible losses | 0 | 57614 | 83443 | |
| 50406 | Paid upon purchase | 366102 | 0 | 0 | |
| 50505 | Debt obligations not repaid on time | 0 | 0 | 18159 | |
| 50507 | Reserves for possible losses | 0 | 0 | 18159 | |
| 50605 | Credit organizations | 428307 | 0 | 0 | |
| 50606 | Other residents | 548980 | 0 | 0 | |
| 50611 | Under agreements with resale | 339574 | 0 | 0 | |
| 50706 | Other residents | 336000 | 336000 | 336035 | |
| 50708 | Other non-residents | 438 | 506 | 1227 | |
| 50905 | Preliminary costs for purchasing securities | 238 | 0 | 0 | |
| 52005 | 0 | 4467938 | 4467938 | ||
| 52006 | 6000000 | 17532062 | 40532062 | ||
| 52301 | poste restante | 0 | 452 | 0 | |
| 52302 | with a repayment period of up to 30 days | 88604 | 0 | 0 | |
| 52303 | with a maturity from 31 to 90 days | 505898 | 0 | 16526 | |
| 52304 | with a maturity from 91 to 180 days | 3101 | 1237 | 206702 | |
| 52305 | with a maturity from 181 days to 1 year | 50000 | 986293 | 1063378 | |
| 52306 | with a maturity of over 1 year to 3 years | 0 | 5514 | 5651 | |
| 52307 | with a maturity over 3 years | 11000 | 11000 | 0 | |
| 52406 | Bills for execution | 9471 | 7402 | 510 | |
| 52501 | Obligations for interest and coupons on issued securities | 110520 | 469820 | 1049150 | |
| 52503 | Discount on issued securities | 0 | 53729 | 61346 | |
| 52502 | Upcoming payments of interest, coupons and discounts on issued securities | 116206 | 0 | 0 | |
| 60102 | Shares of subsidiaries and affiliates | 10 | 10 | 10 | |
| 60202 | Funds contributed to the authorized capitals of organizations | 30058 | 32558 | 32548 | |
| 60206 | Reserves for possible losses | 48 | 48 | 48 | |
| 60301 | Calculations for taxes and fees | 10341 | 48998 | 57810 | |
| 60302 | Calculations for taxes and fees | 2450 | 69008 | 136819 | |
| 60303 | 13714 | 0 | 0 | ||
| 60304 | Settlements with extra-budgetary funds for payroll accruals | 4303 | 0 | 0 | |
| 60305 | 49 | 38 | 155 | ||
| 60306 | Settlements with employees for wages | 126 | 684 | 1982 | |
| 60307 | 0 | 1 | 2 | ||
| 60308 | Settlements with employees for accountable amounts | 3882 | 8863 | 6916 | |
| 60309 | Value added tax received | 14197 | 48836 | 93206 | |
| 60311 | 137490 | 62038 | 38894 | ||
| 60312 | Settlements with suppliers, contractors and customers | 926340 | 1253926 | 856946 | |
| 60313 | 722 | 104343 | 6475 | ||
| 60314 | Settlements with non-resident organizations for business transactions | 4230 | 59519 | 34618 | |
| 60322 | Settlements with other creditors | 87 | 12340 | 25654 | |
| 60323 | Settlements with other debtors | 19109 | 46606 | 94071 | |
| 60324 | Reserves for possible losses | 36270 | 36897 | 92967 | |
| 60401 | Fixed assets (except land) | 4874290 | 7351244 | 10549880 | |
| 60404 | Earth | 924 | 1738 | 14317 | |
| 60601 | Depreciation of fixed assets | 943520 | 1616501 | 2717490 | |
| 60701 | Investments in construction (construction), creation (manufacturing) and acquisition of fixed assets and intangible assets | 542285 | 678901 | 469346 | |
| 60901 | Intangible assets | 18 | 113 | 4006 | |
| 60903 | Amortization of intangible assets | 5 | 36 | 337 | |
| 61002 | Spare parts | 3537 | 12561 | 25141 | |
| 61008 | Materials | 53617 | 37655 | 16299 | |
| 61009 | Inventory and accessories | 37401 | 24384 | 3484 | |
| 61010 | Editions | 7 | 0 | 1 | |
| 61011 | Non-current inventories | 15319 | 3938 | 581138 | |
| 61304 | Deferred income from other operations | 8568 | 87369 | 98751 | |
| 61403 | Deferred expenses for other operations | 276447 | 524017 | 809017 | |
| 70301 | Profit for the reporting year | 1200245 | 0 | 0 | |
| 70501 | Use of profit of the reporting year | 527613 | 1881297 | 0 | |
| 70601 | Income | 0 | 117764315 | 245338650 | |
| 70602 | Income from revaluation of securities | 0 | 268467 | 655925 | |
| 70603 | Positive revaluation of funds in foreign currency | 0 | 147851129 | 458805307 | |
| 70604 | Positive revaluation of precious metals | 0 | 196 | 212 | |
| 70605 | Income from the use of embedded derivatives that are inseparable from the host contract | 0 | 6454 | 3640 | |
| 70606 | Expenses | 0 | 111654764 | 242518684 | |
| 70607 | Expenses from revaluation of securities | 0 | 430364 | 13924 | |
| 70608 | Negative revaluation of funds in foreign currency | 0 | 146707827 | 456727236 | |
| 70609 | Negative revaluation of precious metals | 0 | 171 | 176 | |
| 70610 | Costs from the use of embedded derivatives that are inseparable from the host contract | 0 | 7832 | 6032 | |
| 70611 | Income tax | 0 | 0 | 1349749 | |
| 98000 | Securities stored in the depository | 89 | 43 | 19 | |
| 98010 | Securities stored in the leading depository (NOSTRO depot basic) | 260791334401 | 268969382969 | 250100549405 | |
| 98015 | Securities deposited in other depositories (NOSTRO settlement settlement) | 1934 | 0 | 0 | |
| 98020 | Securities on the way, undergoing verification, re-registration | 0 | 30000 | 0 | |
| 98030 | Shortage of securities | 32094 | 32094 | 32094 | |
| 98040 | Owners' securities | 63962678 | 549521928 | 308278486 | |
| 98050 | Securities owned by the depository | 853061806 | 893580163 | 3124721325 | |
| 98053 | Clients' securities under brokerage agreements | 534 | 0 | 0 | |
| 98055 | Securities in trust management | 79651410 | 17187332 | 176024231 | |
| 98060 | Securities accepted for storage from lower-level depositories (LORO depot basic) | 65795309 | 130905908 | 49132812 | |
| 98070 | Securities encumbered with liabilities | 259728420253 | 267377554354 | 246441729253 | |
| 98080 | Securities whose owners are not identified | 0 | 218900 | 218900 | |
| 98090 | Out-of-circulation securities | 476528 | 476521 | 476511 | |
| 80201 | Securities under management | 424837 | 175044 | 304626 | |
| 80601 | 0 | 439 | 7953 | ||
| 80701 | Paid accumulated interest (coupon) income on interest (coupon) debt obligations | 623 | 0 | 0 | |
| 80801 | Current accounts | 220914 | 53062 | 75958 | |
| 81001 | Loss on trust management | 1745 | 54604 | 12702 | |
| 85101 | Capital in management (founders) | 550611 | 274657 | 324098 | |
| 85201 | Trust management settlements | 70913 | 925 | 7991 | |
| 85301 | Interest income on debt obligations accrued until sale or maturity | 0 | 2998 | 4260 | |
| 85501 | Profit from trust management | 26595 | 4569 | 64890 | |
| 99998 | Double entry correspondence account with passive accounts | 31854172 | 472302123 | 473355301 | |
| 99999 | Double entry correspondence account with active accounts | 869502090 | 1193251713 | 1100764502 | |
| 90701 | Forms of own securities for distribution | 17 | 18 | 19 | |
| 90702 | Forms of own securities for destruction | 19 | 0 | 0 | |
| 90803 | Securities in storage under storage agreements | 278535 | 269591 | 220829 | |
| 90901 | Payment documents awaiting acceptance for payment | 12751 | 203851 | 106787 | |
| 90902 | Payment documents not paid on time | 3954235 | 7028067 | 17022258 | |
| 90907 | Issued letters of credit | 202664 | 119307 | 147015 | |
| 90908 | Issued letters of credit for settlements with non-residents | 447333 | 511172 | 419298 | |
| 91101 | Foreign currency, checks (including traveler's checks), the nominal value of which is indicated in foreign currency, accepted for sending for collection | 1862 | 4049 | 5605 | |
| 91102 | Foreign currency, checks (including traveler's checks), the nominal value of which is indicated in foreign currency, sent for collection | 11684 | 21731 | 19632 | |
| 91104 | Foreign currency accepted for examination | 178 | 87 | 36 | |
| 91202 | Miscellaneous valuables and documents | 63356210 | 142033663 | 135204826 | |
| 91203 | Various valuables and documents sent and issued for reporting to the commission | 235340 | 113933 | 1717678 | |
| 91207 | Forms | 26 | 43 | 42 | |
| 91302 | 6605336 | 0 | 0 | ||
| 91303 | Securities accepted as collateral for loans issued | 74699212 | 0 | 0 | |
| 91305 | 564427391 | 0 | 0 | ||
| 91307 | Property accepted as collateral for issued loans, except for securities | 119714575 | 0 | 0 | |
| 91309 | Unused credit limits in the form of (overdraft) and (under debt limit) | 24712347 | 0 | 0 | |
| 91310 | 37758558 | 0 | 0 | ||
| 91311 | Securities accepted as collateral for placed funds | 0 | 186936335 | 182770304 | |
| 91312 | Property accepted as collateral for placed funds, except for securities and precious metals | 0 | 204076483 | 220689893 | |
| 91314 | Securities received from transactions carried out on a repayable basis | 0 | 567483 | 21497169 | |
| 91315 | 0 | 19860679 | 4470857 | ||
| 91316 | Unused credit lines for providing loans | 0 | 8532361 | 9651462 | |
| 91317 | Unused limits for the provision of funds in the form of overdraft and under the debt limit | 0 | 49257256 | 30593507 | |
| 91403 | Unused lines of credit for obtaining loans | 11180 | 0 | 0 | |
| 91404 | Issued guarantees and warranties | 536489 | 0 | 0 | |
| 91412 | Property transferred as collateral for raised funds, except for securities and precious metals | 0 | 0 | 3402847 | |
| 91414 | Received guarantees and warranties | 0 | 999396853 | 901182997 | |
| 91418 | Nominal value of acquired rights of claim | 0 | 41716081 | 37399656 | |
| 91501 | Fixed assets leased | 221534 | 416205 | 104998 | |
| 91502 | Other property leased | 49 | 34 | 23 | |
| 91503 | 1999984 | 0 | 0 | ||
| 91504 | 1201 | 0 | 0 | ||
| 91507 | Leased fixed assets | 0 | 3069561 | 3680225 | |
| 91508 | Rented other property | 0 | 1965 | 1884 | |
| 91604 | Uncollected interest on loans and other placed funds (except interbank funds) provided to customers | 2002196 | 1221594 | 3619443 | |
| 91704 | Unreceived interest on loans and other placed funds (except for interbank funds) provided to clients written off from the balance sheet of the credit institution | 85361 | 101804 | 102297 | |
| 91802 | Debt on loans and other placed funds provided to clients (except interbank), written off from reserves for possible losses | 72968 | 86544 | 87277 | |
| 91803 | Debts written off at a loss | 7027 | 7086 | 939 | |
| 93001 | Cash supply requirements | 15377303 | 10545642 | 12030841 | |
| 93002 | Requirements for the supply of funds from non-residents | 34590339 | 7651996 | 5456147 | |
| 93302 | 7373867 | 0 | 0 | ||
| 93303 | 0 | 1245000 | 0 | ||
| 93304 | 3064562 | 0 | 0 | ||
| 93306 | 12414778 | 108707 | 4834395 | ||
| 93307 | 12285004 | 6122337 | 1536269 | ||
| 93308 | 0 | 4144110 | 1301649 | ||
| 93309 | 0 | 15747618 | 9979309 | ||
| 93310 | 0 | 6216165 | 0 | ||
| 93503 | with a deadline from 8 to 30 days | 22336 | 0 | 0 | |
| 93602 | with execution time from 2 to 7 days | 2687667 | 0 | 0 | |
| 93702 | with execution time from 2 to 7 days | 902576 | 0 | 0 | |
| 93801 | 0 | 1937614 | 336915 | ||
| 94001 | 42513 | 0 | 0 | ||
| 96001 | Obligations to supply funds | 15336100 | 10599796 | 11986467 | |
| 96002 | Obligations for the supply of funds from non-residents | 34574902 | 7662312 | 5457221 | |
| 96302 | with execution time from 2 to 7 days | 7283225 | 0 | 0 | |
| 96303 | with a deadline from 8 to 30 days | 21049 | 1469020 | 0 | |
| 96304 | with execution period from 31 to 90 days | 3068275 | 0 | 0 | |
| 96306 | with deadline the next day from non-residents | 12305152 | 108983 | 4864698 | |
| 96307 | with execution time from 2 to 7 days from non-residents | 12305825 | 6163702 | 1536988 | |
| 96308 | with a deadline of 8 to 30 days from non-residents | 0 | 4558075 | 1350364 | |
| 96309 | with a period of execution from 31 to 90 days from non-residents | 0 | 16820279 | 10215735 | |
| 96310 | with a deadline of more than 91 days from non-residents | 0 | 6234117 | 0 | |
| 96602 | with execution time from 2 to 7 days | 2629226 | 0 | 0 | |
| 96702 | with execution time from 2 to 7 days | 945089 | 0 | 0 | |
| 96801 | Unrealized exchange differences on foreign currency revaluation | 232374 | 102905 | 64052 | |
| 97001 | Unrealized exchange rate differences on revaluation of securities | 59728 | 0 | 0 | |
Appendix 2
| Bank VTB 24 (closed joint stock company) | ||||
| Balance sheet | ||||
| Registration number: 1623 | ||||
| BIC code: 44525716 | ||||
| Address: Moscow, st. Myasnitskaya, 35 | ||||
| thousand rubles | ||||
| № | Name of balance sheet items | 01.01.2009 | 01.01.2010 | 01.01.2011 |
| I. Assets | ||||
| 1 | Cash | 15 535 497 | 36 402 274 | 39 570 860 |
| 2 | Funds from credit institutions in the Central Bank of the Russian Federation | 8 885 019 | 7 001 004 | 14 155 599 |
| 3 | Funds in credit institutions | 3 882 130 | 52 807 721 | 3 335 238 |
| 4 | Net investments in securities measured at fair value through profit or loss | 24 734 580 | 28 803 904 | 53 451 210 |
| 5 | Net loans outstanding | 262 242 118 | 459 657 644 | 578 600 244 |
| 6 | Net investments in securities and other financial assets available for sale | 366 458 | 369 026 | 369 772 |
| 7 | Net investments in securities held to maturity | 0 | 6 279 927 | 6 862 398 |
| 8 | Fixed assets, intangible assets and inventories | 4 583 873 | 6 493 997 | 8 945 785 |
| 9 | Other assets | 3 288 541 | 5 846 145 | 17 517 187 |
| 10 | Total assets | 323 518 216 | 603 661 642 | 722 808 293 |
| II. Liabilities | ||||
| 11 | Loans, deposits and other funds of the Central Bank | 0 | 88 103 245 | 12 270 076 |
| 12 | Funds from credit institutions | 51 087 207 | 62 710 909 | 61 344 452 |
| 13 | Client funds (non-credit organizations) | 219 143 914 | 365 284 043 | 502 129 341 |
| 14 | Debt issued | 6 668 074 | 23 011 898 | 46 292 767 |
| 15 | Other obligations | 2 249 951 | 4 583 619 | 6 390 126 |
| 16 | Provisions for possible losses on contingent credit obligations, other possible losses and on transactions with residents of offshore zones | 1 421 341 | 4 798 560 | 14 850 984 |
| 17 | Total liabilities | 280 570 487 | 548 492 274 | 643 277 746 |
| III. Sources of own funds | ||||
| 18 | Funds of shareholders (participants) | 30 007 812 | 33 567 652 | 50 636 514 |
| 19 | Own shares (shares) purchased from shareholders (participants) | 476 498 | 476 498 | 476 498 |
| 20 | Share premium | 11 370 585 | 14 528 162 | 22 625 380 |
| 21 | Reserve and other funds, income and expenses of future periods | 1 341 355 | 673 098 | 888 535 |
| 22 | Revaluation of fixed assets | 31 843 | 7 724 | 7 724 |
| 23 | Retained earnings (uncovered losses) of previous years | 0 | 1 660 924 | 1 660 959 |
| 24 | Unused profit (loss) for the reporting period | 672 632 | 5 208 306 | 4 187 933 |
| 25 | Total sources of own funds | 42 947 729 | 55 169 368 | 79 530 547 |
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Problems and prospects for lending in Russia
Bunyaeva A.M.,
student of group ME-1301,
3rd year, Faculty of Economics,
Ivanova I.G., Ph.D., assistant professor,
Russia, G. Krasnodar
annotation
The article discusses the main patterns functioning of the credit system in Russia. The features of the key areas of the credit system of the Russian Federation are briefly outlined. The problems of their development are described and prospects for further application in modern economic conditions are outlined. Recommendations have been developed to improve the efficiency of certain types of lending.
Keywords: credit system; problems of the credit system; lending; increasing lending efficiency.
Abstract
The article describes the main principles of functioning of the credit system in Russia. Summarizes the features of the key directions of the credit system of the Russian Federation. Described problems of their development and pros-pects for future use in modern economic conditions. Developed recommendations on improving the efficiency of certain types of lending.
Keywords:the credit system; the problem of the credit system; credit; enhance operations.
The modern credit system in the Russian Federation is one of the forms of stability and economic growth countries. This is “a set of a wide variety of credit and financial institutions operating in the loan capital market and carrying out the accumulation and mobilization of income, consisting of several institutional links or tiers.”
Bank lending is carried out for various types of loans. Their classification can be based on numerous features reflecting various aspects of the lending process.
The classification criteria and types of loans are presented in Figure 1.
Rice. 1. Classification of loans.
commercial bank lending
Rapid restructuring in the global economy has made it possible to identify, during the crisis, the problems of the modern credit system of the Russian Federation that are hindering its development.
Such problems include:
1) the existence of small commercial banks with a weak financial base;
2) problems of the mortgage system;
3) problems with car loans;
4) increase in the cost of loans for the population;
5) tightening the conditions of banks for all types of loans for the population and legal entities in conditions of instability of the economic situation;
6) competition from new financial institutions, insurance companies and investment funds that attract deposits from the public not on a genuine commercial basis, but on a “pyramid” basis;
7) the inability of many banks to lend to production;
8) falling demand for loans;
9) reduction in lending volumes.
Thus, the modern credit system in the Russian Federation does not fully meet all the needs of the economy; changes are needed in certain areas of lending.
During the last months of 2015, there has been an outflow of capital from foreign investors from some sectors Russian economy due to the deterioration of relations between the Russian Federation and a number of EU countries, the USA and Canada. There is a tendency to curtail the activities of some foreign banks in the Russian Federation, to reduce the volume of lending to these financial organizations, which is projected to continue in 2016.
But at the same time, Russian banks in such a situation become stronger competitive advantages. Investors' trust in foreign banks decreases due to the freezing of individual accounts and violation of the rights of depositors. At the same time, Russian financial institutions seem more stable. Therefore, in the near future there will be a demand for borrowing funds from large Russian banks. This will be facilitated by the restoration of the population's solvency and a slowdown in the growth of overdue payments.
It is necessary to apply a number of measures to improve the efficiency of certain types of lending:
1) providing state support to Russian banks;
2) increase in the volume of loans from federal budget subjects of the Russian Federation and the period for their provision is up to 3 years;
3) creation of favorable conditions for lending by commercial banks to small and medium-sized businesses (increasing loan amounts for legal entities up to 20 million rubles, for entrepreneurs without forming a legal entity up to 1 million rubles and the term of its provision up to 5 years, reducing interest rates on credit);
4) expansion of targeted lending to enterprises for payments for delivered products (factoring);
5) providing subsidies for the development of educational loans;
6) providing subsidies for strengthening banking system;
7) improving requirements for borrowers (lowering age requirements for borrowers, etc.);
8) an increase in the volume of loans from large Russian banks.
In modern conditions, a certain restraining position of the state is necessary in relation to regulating rates and creating favorable conditions for repaying debt on loans. The stability of the credit system of the Russian Federation and the growth of its quality indicators should be priority issues, because a clearly calibrated lending mechanism ensures the sustainable development of the country’s economy.
Used sources
1. Monetary encyclopedic dictionary / comp. S.R. Moiseev. - M.: Business Service, 2006. - 383 p.
2. Zakharova E. 2014 will increase rates on car loans [Electronic resource] // Gudok. rn: website. - URL: http://www.gudok.ru/transport/auto/?ID=1033710 (date accessed 05/03/2014).
3. Kosterina T.M. Banking: educational and practical guide. - M.: Publishing house. EAOI Center, 2009. - 360 p.
4. Kuleshova L.V., Lapina E.N. Mortgage lending as a solution housing problem in Russia (Scientific journal of KubG AU) [Electronic resource]. - Krasnodar: KubGAU, 2012. - No. 05 (079). - With. 648-659. URL: http://ej.kubagro.ru/2012/05/pdf/47.pdf (access date 05/02/2012).
5. Seleznev A. Problems of improving the credit and banking system // Economist. - 2009. - p. 96-101
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ANNOTATION
The article conducted a study of the bank lending market for corporate clients, in particular, an analysis of the dynamics of the volume of loans issued by legal entity borrowers, by terms of provision and industry structure, as well as the volume of overdue debt. The main problems of development of the corporate lending market in the banking system of the Russian Federation have been identified.
Keywords: lending, legal entities, corporate clients, commercial banks, overdue debt.
Introduction. Corporate lending plays an important role in the development of the country's economy. Increasing the availability of credit products allows legal entities to compensate for the lack of funds, which helps maintain their economic turnover, introduce innovations and expand their activities. Providing organizations with borrowed funds stimulates production processes, supports reproduction in large financial, industrial and other companies, which contributes to the development of the country's economy as a whole.
Purpose of the study. Conduct an analysis of the dynamics of the bank lending market for corporate clients, as well as the volume of overdue debt, identify factors that negatively affect the development of the market and possible solutions to reduce the effect of such factors.
Having analyzed the statements of almost any bank, both Russian and foreign, we can most likely say that its loan portfolio will contain a significant share of corporate loans, i.e. funds provided for temporary use to legal entities. Even those credit institutions that specialize in servicing retail clients, for the purpose of diversification, place part of their funds in corporate loans. Traditionally, such loans are viewed as more conservative and less risky compared to retail lending. Thus, in an unstable economic environment, corporate lending remains one of the few sustainable sources of profit for a bank without taking on excessive risks. However, both individuals and legal entities are not absolutely reliable borrowers, therefore, with an unscrupulous approach to the procedure for assessing creditworthiness and financial stability The bank risks incurring significant losses. Taking into account the systemic importance of corporate lending for the banking sector, we will analyze the trends that have developed in the Russian credit market over the past few years, highlight the most pressing problems and determine the optimal solutions to eliminate them.
Dynamics of lending to legal entities and individual entrepreneurs for the period from 2013 to 2018. was ambiguous (Figure 1). After the growth stage of 2013-2014. over the next two years there was a decline in lending activity. The negative dynamics in the issuance of corporate loans was the result of a number of factors. The decline in GDP growth rates, the negative impact of economic sanctions introduced in mid-2013, the decline in world energy prices, as well as the general deterioration in the economic situation in the country provoked a reduction in business activity in almost all key areas of the economy, which resulted in a decrease in demand for loans from business. An additional contribution to the decline in the rate of lending to legal entities was made by the process of devaluation of assets of the banking sector: for 2014-2016. the volume of loans denominated in foreign currency fell from RUB 5.3 trillion. up to 3.2 trillion rubles. A reduction in the share of foreign currency loans was observed in all sectors of the economy. Separately, it is worth highlighting the mining industry, the share of foreign currency loans in which decreased significantly from 61.4% to 49.1%. However, mining enterprises continue to demonstrate the most high level debt in foreign currency.
Figure 1. Volume of loans provided to resident legal entities and individual entrepreneurs in rubles and foreign currency, billion rubles. [6]
During 2017, the negative dynamics of corporate lending were overcome. The stabilization of the country's economy has led to an increase in demand for loans from legal entities. A significant contribution to lending growth was made by banks with state participation, whose loan portfolio increased by 7.8%. Large private banks also took advantage of the growing demand for borrowed funds, increasing their loan portfolios by 5.9%.
Despite the stabilization of lending activity in the corporate sector, specific gravity foreign currency loans continued to fall, decreasing in 2017 from 32.2% to 29.7% (and the largest devaluation of loans again occurred in the mining sector - the share of foreign currency loans reached 40%).
The fall in demand for credit funds occurred against the backdrop of a reduction in interest rates. During 2015-2018. There was a steady decline in interest rates on loans for non-financial organizations and small and medium-sized enterprises (SMEs) (Figure 2). If in January 2015 the cost of borrowed resources for a company from the non-financial sector for a term of up to a year averaged 19.9%, then by the end of 2018 the rate dropped to 8.9%. However, against the backdrop of a rapid decline in the consumer price index, loan rates in real terms continue to remain quite high.
Figure 2. Weighted average interest rates on corporate loans for the period 2015-2018. [ 8 ]
Among the features of the movement of interest rates on corporate loans, it should be noted that throughout the entire study period, the cost of short-term loans (up to 1 year) for SMEs remained consistently higher (on average by one percentage point) than for long-term loans (over 1 year). For large borrowers, no such dependence is observed: the average spread between rates on short-term and long-term loans for the study period for non-financial organizations was 0.02%.
The sectoral structure of the loan portfolio also changed (Figure 3). There is a reduction in lending volumes in such areas as “Construction” and “Wholesale and retail trade”. The last category showed the worst result: the share of loans to retail enterprises fell from 19.2% of the total loan portfolio at the beginning of 2015 to 13.9% as of January 2018. The reduction in lending in the above areas is primarily due to a drop in the profitability of the respective enterprises. The negative situation in the real estate market has led to a deterioration in the financial results of development companies. As a result, a significant part of the loans already issued moved into the IV-V quality category due to the inability of borrowers to timely fulfill their obligations to creditors. A similar situation was observed in trade - a prolonged decline in real incomes of the population minimized their purchasing activity, thereby reducing trade turnover and profits of domestic retailers. As a result, increased risk in the construction, wholesale and retail sectors made them unattractive to the banking sector.
Released cash The banking sector was distributed among a number of other industries, which include “Mining,” “Production and distribution of electricity, gas and water,” and “Agriculture.” The best result was demonstrated in the category “Real Estate Operations” - an increase from 14.4% to 17.1%.
Figure 3. Industry structure of the corporate loan portfolio for the period 2015-2018. [6]
The above-mentioned industries were the first to adapt to changes in economic conditions in the country and began to demonstrate the strengthening of their own financial positions. Since the main profit of mining enterprises is generated from export earnings, this made it possible to take full advantage of the weakening ruble exchange rate. Agricultural producers, as part of the import substitution program, began to actively develop the domestic market. We should not forget about the increase in housing and communal services tariffs, which has increased the profitability of the respective companies. As a result, the above industries have taken over credit resources, becoming more attractive for the banking business.
Let's look at how the quality of banks' loan portfolios has changed. Over most of the period under study, the share of overdue debt in the total volume of corporate loans showed an upward trend. The maximum was reached in 2017 and amounted to 6.4%, followed by a decrease to 5.5%. As noted above, the period 2014-2016. turned out to be difficult for the domestic economy; the period of adaptation of economic entities to the changed economic conditions extended over a fairly long period. Only in 2017 was the pre-crisis level of gross domestic product reached. Negative economic dynamics could not but affect the quality of banks' loan portfolios. At the end of 2015, the volume of overdue debt increased by 58.4%, which is the worst result for the period under study (Figure 4). Over the next two years, the indicator stabilized, but at the end of 2018 the result was negative - the amount of overdue debt reached 2.1 trillion. rub., and the growth rate was 7.8%.
Figure 4. Overdue debt on loans to resident legal entities and individual entrepreneurs in rubles and foreign currency, billion rubles. [7]
An analysis of the dynamics of the share of overdue debt in the total volume of issued corporate loans (Table 1) shows that despite the growth of unfulfilled obligations on time in absolute terms, based on the results of 2018, their relative share of the loan portfolio decreased significantly - from 6.4% to 5. 5% [7]. This suggests that the growth of bad loans is associated to a greater extent with the increase in business lending volumes than with the deterioration of the risk management system of banks. This is confirmed by the dynamics of the volume of lending to legal entities (Figure 1) [6]: at the end of 2018, the maximum volume of corporate loans issued during the study period was achieved - 45 trillion. rubles
Table 1.
Share of overdue debt in the corporate loan portfolio of banks [7]
For certain types of economic activity, there are multidirectional dynamics of changes in the quality of the loan portfolio. For ruble loans to companies engaged in agriculture, manufacturing, transportation and storage, wholesale and retail trade, during 2018 there was an improvement in the quality of loans. The situation is worse with the construction industry, which has the highest concentration of loans of IV–V quality categories. The main reasons for the decline in the payment discipline of developers, according to the Bank of Russia, were inappropriate spending of funds intended for construction and a decrease in revenue due to a drop in sales volumes of real estate. In addition to the construction industry, a significant increase in the share of loans of IV–V quality categories was observed for foreign currency loans to wholesale and retail trade companies.
The steady increase in overdue debt and the decline in the quality of the loan portfolio over the past four years have become a real problem for commercial banks. The need to withdraw significant funds from circulation to form required reserves and losses on bad debts place a noticeable burden on the country's banking system. Credit institutions need to adapt to new market conditions by adjusting your credit policy. The most effective, in our opinion, are the following steps: first, if possible, lending to industries characterized by the largest share of “bad” loans should be temporarily reduced. As the study showed, the most problematic areas at present are the construction and trade sectors - lending to them is associated with increased risk. Analytical departments of banks should carefully monitor the situation in the real estate market, as well as retail and wholesale trade. An important macroeconomic indicator in this case is real income per capita - its growth will lead to increased activity, first in retail trade, and then in the real estate market, which will make lending in these areas more profitable.
An analysis of the credit market showed that certain sectors of the economy went through the crisis with fewer losses and look more attractive from the point of view of placing credit funds in them. These include mining enterprises and agricultural producers. Throughout 2018, both industries demonstrated a decrease in the share of category IV-V loans and an increase in payment discipline. To improve the reliability of their loan portfolio, banks should shift their focus to lending to eligible borrowers. This can be done by adjusting the pricing policy: establishing a premium on the interest rate for borrowers from industries that demonstrate weak growth potential, and providing a discount for businesses that have managed to adapt to new economic conditions.
Despite the fact that bank lending still remains in demand, there are factors limiting its volume; we will consider them further.
Opacity of borrower reporting
When considering an application for a loan, the borrower, a legal entity, submits documents to confirm its solvency. Some of the documents being verified do not reflect real data on the financial situation of the borrower.
Low transparency of enterprise reporting does not allow the bank to determine the actual volume of expenses and conduct an adequate assessment of the borrower’s creditworthiness, as well as predict possible directions for the development of its business in the future. By deliberately hiding information about the real volume of revenue and debt burden, an enterprise damages its own business and reputation. Entrepreneurs do not make all payments through their current account, thus reducing the tax base and avoiding paying income tax. Accordingly, by reducing the turnover on the current account, the company can count on a smaller credit limit. According to Rosstat for 2018, the share of shadow revenue amounted to 20% of GDP. Most of these companies do not have a stable position in the market and are characterized by irregular income, which certainly raises doubts about its solvency among the creditor.
Absence or poor quality of collateral
When providing a loan, banks often resort to this form of ensuring repayment as collateral. Real estate objects and land, working capital. Often, an enterprise may not own real estate to provide as collateral, and the goods produced do not have the necessary level of liquidity. To carry out the activities of the enterprise, buildings, equipment and vehicles can be rented. However, in the absence of collateral, a blank loan may be considered, but interest rates for unsecured credit products higher, and the amount and term of the loan is less than for secured loans. Accordingly, the more liquid the borrower’s collateral, the more loyal the terms of the loan agreement will be.
Problems in lending to small and medium-sized businesses starting their activities
Many entrepreneurs starting their own business need borrowed funds or financing. When applying to a bank to obtain a loan, you must provide financial statements past periods to conduct a solvency analysis for risk assessment purposes. However, at the stage of creating a business, an enterprise cannot have reporting capable of confirming it financial position, as well as liquid property that can be provided as collateral. Lending to start-ups certainly involves taking significant risks, which is why most banks are not ready to lend to start-up businesses.
Venture financing can be an alternative to lending. Venture financing is a long-term investment of private capital in the equity capital of a newly created enterprise in order to profit from the increase in the value of the invested funds. This type of financing takes place if the invested company is promising in the chosen industry and is focused on creating high-tech products.
Unlike lending, which requires the return of borrowed funds to the lender, venture financing assumes in advance the possible loss of invested funds (usually with a probability of more than 50%). Funds are placed in the form of a share contribution in authorized capital of the invested enterprise, depending on the share of the investment, profits will be distributed among the shareholders. Important feature venture financing is high degree personal interest of investors in the profitability of the enterprise, which is explained by the status of a shareholder. Therefore, investor participation is not always limited to just purchasing a share in the authorized capital, but also manifests itself in the form of providing consulting and management services.
Also, when analyzing the level of credit risk, the difficulty of identifying it creates a lack of credit history. When assessing the credit risk of an individual borrower, the bank may make a request to the Bureau credit histories to obtain information about the quality of debt servicing on previous loans. Based on the data obtained, an analysis of the riskiness of lending to a given borrower will be the most accurate and complete for making an appropriate decision on granting a loan.
The creation of a unified credit history bureau for legal entity borrowers would allow the lender to more accurately determine the likelihood of repayment of borrowed funds based on retrospective data on the borrower’s lending, as well as speed up the process of considering a loan application.
To summarize, we can say that representatives of small and medium-sized businesses are more likely to receive a loan if they have liquid collateral and a stable positive financial result based on the results of operating for at least 6 months, as well as clear development prospects in the future.
To develop lending to corporate clients, it is necessary to improve methods for assessing creditworthiness, reduce interest rates, and expand programs to support small and medium-sized businesses.
For the banking sector, a reduction in the key rate of the Bank of Russia was expected (by 0.25 percentage points to 7.5 as of June 14, 2019) [1], but this will not entail significant changes in lending conditions. This is due to the fact that, against the backdrop of moderate dynamics of household incomes, retail trade turnover is declining, and investment activity remains restrained.
Of course, a reduction in the key rate is a positive signal and also indicates stabilization of the inflation rate. However, this is not enough for the growth of the country’s economy; it is also necessary to ensure the maintenance of the investment climate in the country, the growth of incomes of the population and the development of institutions.
The development of lending will be facilitated by subsidizing interest rates and providing loan guarantees to small and medium-sized businesses by the state. In this way, it is possible to ensure diversification of risks between the state and credit institutions.
For the most significant regional banks, it is advisable to allocate budget funds to finance lending to small businesses. The source of financing may be the National Welfare Fund.
The creation of a unified complex for collecting, storing and processing information on the volume, timing and quality of debt service of borrowers, similar to the Credit History Bureau, would also significantly affect the development of lending to the corporate sector.
Let us briefly summarize the research conducted within the framework of this article. The last four years have been difficult for the domestic economy in general, and the banking system in particular. An unfavorable confluence of economic and geopolitical factors led to a weakening national currency, decrease purchasing power population and a slowdown in business activity in almost all industries, especially those aimed at the domestic market. The result was a drop in lending growth rates, a deterioration in the financial performance of borrowers and, as a consequence, a significant increase in the volume of overdue debt. However, the last two years have shown positive trends: the pre-crisis level of lending to legal entities and individual entrepreneurs has been restored, the share of overdue debt is gradually declining, and interest rates on loans are at their minimum values for the period under study. In conclusion, we can say that the banking sector has, for the most part, completed the adaptation stage and is gradually regaining its position, including in the field of corporate lending.
Bibliography:
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STATE, PROBLEMS AND PROSPECTS OF BANK LENDING TO INDIVIDUALS IN THE RUSSIAN FEDERATION
Trushnikova A. D.,
Bachelor's student, Financial University
Annotation. Lending to individuals is one of the main activities of commercial banks, generating income for them. For the population, loans are one of the possible ways to improve their standard of living, for example by purchasing real estate. Every year, the demand of individuals for bank loans increases, competition in the market among credit institutions increases, which causes necessary changes in the credit system of the entire country, which determines the relevance of this study. The article examines the dynamics of the volume of loans issued, weighted average interest rates on loans to individuals, and their relationship. The main factors that influenced the slowdown in the development of the credit system in 2014-2015 were identified. The result of the study was the conclusion that this year the credit system is emerging from the crisis and the volume of loans issued to individuals is increasing.
Key words: banking sector; lending to individuals; the economic growth; inflation; solvency; liquidation; consolidation.
CONDITION, PROBLEMS AND TENDENCIES OF INDIVIDUALS" LENDING BY BANKS IN THE RUSSIAN FEDERATION
Trushnikova A. D.
Abstract. Lending to individuals - one of commercial banks" field of concern, which brings them income. With the help of using credit, people can improve the quality of life, such as buying property. Demand on bank loans increases every year, that"s why the competition among credit institutions is rising too. These tendencies cause the necessary changes in the credit system throughout the country, which leads to the relevance of this study. In this article is given an integrated analysis of the dynamics of loans, the weight -average interest rates on loans to individuals and their correlation. To evaluate the modern situation in the branch the author found out the main factors that influenced the slowdown of the credit system in the years 2014-2015. The result of this analysis is a conclusion that in this year, the credit system is emerging from crisis, the volume of loans to individuals is increasing.
Keywords: banking sector; lending to individuals; economic growth; inflation; paying capacity; liquidation consolidation.
Scientific supervisor: Shatalova E.P., candidate economic sciences, Associate Professor of the Department financial markets and banks.
The modern lending system of the Russian Federation is one of the forms of stability and economic growth of the country. This is “a set of a wide variety of credit and financial institutions operating in the loan capital market and carrying out the accumulation and mobilization of income, consisting of several institutional links or tiers.”
Since the credit and banking systems are interdependent, their development occurs in combination and without improving the banking system, effective lending is impossible financial institutions various sectors of the economy. However, at present, due to the unstable political and economic situation, tense foreign policy relations of the Russian Federation with the EU countries and the USA, the credit system, as well as many other sectors of the economy, have been subject to the negative consequences of these changes.
Analysis of the current state and problems of lending by banks to individuals is necessary to identify prospects and directions for further development of the entire credit system of the Russian Federation. After all, the level of economic relations in many sectors and their financial results for the country’s economy depend on the effectiveness of the credit system of the Russian Federation in the current situation. This explains the high relevance of this study.
The bank is called a credit institution, since the largest part of the banks' assets is placed in credit operations. Lending to the population refers to traditional types of banking services. Loans to individuals are one of the most profitable areas of activity of both state and commercial banks.
The most common and general classification of loans to individuals according to the purpose of providing the loan. There are four types of loans: consumer, car loans, mortgage loans and non-targeted loans for consumer needs. Consumer is the most common type of loan; as a rule, the amounts provided do not exceed 100 thousand rubles. and are issued under
very significant percentages. One of its varieties is commodity credit. It is issued directly at the point of sale, where there are often small mobile counters - representative offices of banks.
A car loan is provided for the purchase of a new or used car of Russian or foreign manufacture for a period of up to five years. Depending on the program, it can act as collateral or security for a loan. Loans to individuals for the purchase of a car can be issued in the amount of up to 100% of the cost of the vehicle. Since this is targeted lending, the agreement states that the amount cannot be used for other needs. If we are talking about buying a new car, the bank directly transfers funds to the car dealership's bank account.
Mortgage, issued on the security of any real estate of the client, has become widespread in the conditions market economy. Can be purchased real estate both in the primary and secondary markets, the first direction is dealt with by banks, the second - by financial companies, funds that buy up the assets of mortgage banks.
Non-targeted loans for consumer needs - this type of loan can be provided for any purpose not specified in the agreement. Varieties of these loans to individuals can be loans for education, vacation, treatment, and emergency needs. An alternative to cash is bank accounts. credit cards with a limit limited to the loan amount that can be used for any purpose.
Let's consider data on the volume of loans provided to individuals over the period from 2007 to 2016.
Let's present the data in the table. 1 in Fig. 1.
As you can see, over the past nine years, the volume of loans issued to individuals increased by 7.9 million rubles, or 76.2%. This is due to increasing competition in this industry and, as a consequence, the sustainability of the growth of the bank’s loan portfolio. However, it is obvious that over the past one and a half to two years the situation has changed for the worse, which was facilitated by a number of factors.
Table 1
Dynamics of the volume of loans issued to individuals in the banking sector of the Russian Federation in 2007-2016.
Year Volume of loans issued, million rubles.
Thus, in recent years there has been a steady trend towards a reduction in the number of banks in the Russian Federation. This process began in connection with the global economic crisis in 2008 and continues to this day. Thus, in the period from 2008 to 2016, the number of banks decreased from 1136 to 733 (as of January 1, 2016), which is more than 35%. In table Table 2 presents data on the number of banks in the Russian Federation for the period under review.
The dynamics of changes in the number of banks in Russia can be seen more clearly in the graph
The decline in the volume of bank loans to individuals was due to many factors. It is impossible not to notice that, in addition to the decrease in the activity of creditors, inflation, which has been growing since the beginning of 2015, had a significant impact. The increase in the regulator's key rate caused large-scale changes in interest rates of commercial banks. Rates on bank loans to the population showed record values of 25-35% in the fourth quarter of 2014 - the first quarter of 2015 (Fig. 3).
Subsequently, banks managed to adapt to the new “realities” by increasing the pace of issuing loans to individuals. Particularly noticeable was the growth in issuances in the secured lending segment, where support for car loans and mortgages was provided government programs subsidizing interest rates. However, despite the improvements that occurred in this area at the end of 2015 and in the first quarter of 2016, the volume of loans issued to the population did not return to the maximum value achieved in 2014. this moment the volume of loans issued to individuals is 6.5% below the level of 2014. In addition, there are a number of problems that prevent the credit sector from developing.
The following problems can be identified that hinder the development of the credit system of the Russian Federation. Firstly, this is an increase in the cost of loans for the population, which is not due to
12000000 10000000 8000000 6000000 4000000 2000000 o
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Volume of loans issued, million rubles.
Rice. 1. Dynamics of the volume of loans issued in 2007-2016.
Table 2 Total number of operating banks in the Russian Federation in the period 2008-2016
Year Number of operating banks in the Russian Federation
only with an increase in interest rates on loans, but also with a decrease in household incomes due to inflation and the economic crisis. This raises the problem of reducing the overall level of solvency. Secondly, this is a problem associated with a decrease in public confidence in credit institutions due to the loss of deposits during the liquidation of a financial institution in which citizens placed their funds in deposit accounts. As well as the inability of many banks to lend to production, a drop in demand
for loans, tightening positions of the international banking community in relation to Russian credit institutions, competition from new financial institutions, insurance companies and investment funds.
Separately, we should highlight the problem of non-repayment of loans or late payment, which has become especially relevant in recent years. In connection with this banking institutions were forced to tighten lending conditions for both individuals and legal entities due to the instability of the economic situation. Thus, many banks have extended the term early repayment loan, they use the method of blacklisting the client if there is a slight delay in loan payments. In the face of declining household incomes, layoffs and wage cuts for the population, some banks, for example PJSC Promsvyazbank, provide loans only to government employees, thereby trying to protect themselves from the risk of non-repayment or late repayment of the loan.
Due to existing problems in the credit market and in banking sector In general, new trends in the development of bank lending to individuals have emerged. Currently in the field bank loan The most noticeable trends are:
Changing the structure of loan payment schemes;
Number of operating banks in the Russian Federation Fig. 2. Dynamics of the total number of operating banks in the Russian Federation
Stack percentage
■ over 1 year ■ up to 1 year
Rice. 3. Weighted average interest rates on loans to individuals
Tightening of loan conditions and requirements for potential borrowers;
Strengthening measures to protect banks from non-repayment and non-payment of issued loans;
Development of Internet banking.
Thus, we can say that in general, lending to individuals has been gaining momentum in the last decade, this is confirmed by the fact that over the past nine years the volume of loans issued to individuals has increased by 76.2%. The growth of this area was influenced by many factors, such as competition in the banking sector and rising incomes of the Russian population.
However, in 2014-2015. the situation has changed for the worse: the economic crisis, Western sanctions, inflation, large-scale changes in interest rates of commercial banks (rates on bank loans to the population during this period showed record values of 25-35%) led to a reduction in the volume of loans issued to individuals by 5-6 %. All these changes had an impact not only on banks, but also on the population; many lost their jobs and became
are unable to take out a loan or have postponed it for a time that is more favorable to the economic situation.
Another factor that has influenced the slowdown in the development of the credit system is the fact that the banking sector is undergoing significant changes, and the number of operating banks is rapidly declining. In order to remain on the market, banks are forced to take measures and comply with all the requirements of the Bank of Russia. The measures they took, in particular, affected lending to individuals. The volume of borrowed funds was limited, limits on customer credit cards were lowered, salary requirements for potential clients increased, as well as the volume of documents required to obtain a bank loan; many banks even provide loans only to government employees whose solvency does not raise concerns.
The dynamics of 2016 indicate that the credit system is emerging from the crisis; the volume of loans issued to individuals has increased.
Literature
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