Sberbank has increased its interest rates on consumer loans by between 3 and 5.6 percentage points to 17-25.5 percent per annum, while some banks are considering following suit.
"25.5 percent is a high rate for such a major bank," a deputy CEO of Raiffeisenbank, Andrei Stepanenko, told Vedomosti Tuesday.
Stepanenko believes the move will prompt other banks to increase their rates.
"We're monitoring the situation closely and we are ready to react quickly," said Yevgeny Sidorov, head of sales at Home Credit and Finance Bank. He said the bank might change some of its loan rates.
Representatives from Raiffeisenbank and VTB said they had no plans to increase their interest rates.
The decision to raise interest rates in February came just before the Central Bank's plans to toughen regulations aimed at preventing risky loans. In 2012 risky loans rose by 40 percent, according to Central Bank data.
In March, the Central Bank plans to double the minimum reserve requirement for unsecured retail loans. In June it will increase capital requirements for loans whose total cost exceeds 25 percent per annum.
"Higher requirements for unsecured retail loans will result in banks raising their interest rates," the managing partner of Frank Research Group, Yuri Gribanov, told Vedomosti.
The new rates "have nothing to do with the regulator's actions," a representative at Sberbank told Vedomosti in December. According to the representative, the bank had previously launched a seasonal campaign to promote consumer lending. ? Now the campaign has ended and the rates are back to November levels.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.