This text is translated into Russian by google automatic human level neural machine.
EastRussia is not responsible for any mistakes in the translated text. Sorry for the inconvinience.
Please refer to the text in Russian as a source.

JV RF: the risk of a financial bubble has arisen in the mortgage market

JV RF: the risk of a financial bubble has arisen in the mortgage market

The Accounts Chamber of Russia warned of the risk of a financial bubble in the mortgage market. The agency believes that the home lending market in the country needs regulation by the Central Bank.

This is stated in concluding Of the Accounts Chamber for the report on the execution of the federal budget for 2020.

"The mortgage market requires close attention from the regulator, since a sharp increase in the mortgage portfolio and rising real estate prices can form a financial bubble, which can seriously hit the stability of the financial sector and the income of the population," the conclusion says.

At the end of 2020, the mortgage portfolio grew by 21% compared to the previous year and amounted to 9,5 trillion rubles. 1,7 million mortgage loans were provided for 4,3 trillion rubles. The increased demand for mortgages provoked an increase in real estate prices: in the primary market - by 12%, in the secondary market - by 9,5%.

About the possible mortgage crisis last year, said the director of the department for banking supervision of the Central Bank Alexander Danilov. The main risks are that the growing volume of loans will provoke an increase in housing prices. After the end of the program, demand may fall, and with it property prices. And if at this time a crisis occurs and the population loses income, then massive non-payments may begin.


October 25: current information on coronavirus in the Far East
Digest of regional events and latest statistics