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Russian Banks Will Limit Consumer Credit rate Starting From July 1

New law has already been approved by the government.

01.Jul.15 11:56 AM
By Abigail Richards


Russian Banks Will Limit Consumer Credit rate Starting From July 1
Russian banks will be obliged to establish limits in consumer credits rate starting from July 1. New amendments in existing law regarding crediting come into force today.

According to implemented amendments the full cost of consumer credit must not exceed the value which was calculated by the Bank of Russia. In other words credit rate must not be higher than market average value.

At the same time today other amendments come into force. They include obligations for Russian banks to pay differentiated contributions to the Deposit Insurance Fund depending on the total interest rate on deposits of Russian citizens. It should be mentioned that earlier Russian banks paid a fixed contributions to the Deposit Insurance Fund which was 0.1% from average quarterly balances of individuals’ deposits.

At the same time the main Russian regulator decided to put off such measures earlier this year on the peak of economic crisis. The deadline for making decision was announced July 1, 2015. Now limitation of consumer credit rate seems to be another efficient tool for stability of Russian financial sector.

For those who do not know, consumer credit is a type of credit which is provided for citizens directly on purchasing particular consumer products. Such credits are essential for people who meet financial problem connected with lack of goods or services.

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