Household Over-Indebtedness in Russia

In the last three years, household debt has risen by a third as disposable income declined. Declining interest rates, ease of access to credit for consumers and poorly regulated microfinance lending practices led to fast growth in consumer debt. Co...

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Main Author:	World Bank
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	CONSUMER DEBT CONSUMER LENDING MICROFINANCE FINANCIAL LITERACY INDEBTEDNESS
Online Access:	http://documents.worldbank.org/curated/en/518651584539590418/Household-Over-Indebtedness-in-Russia http://hdl.handle.net/10986/33495

id	okr-10986-33495
recordtype	oai_dc
spelling	okr-10986-334952021-05-25T09:33:44Z Household Over-Indebtedness in Russia World Bank CONSUMER DEBT CONSUMER LENDING MICROFINANCE FINANCIAL LITERACY INDEBTEDNESS In the last three years, household debt has risen by a third as disposable income declined. Declining interest rates, ease of access to credit for consumers and poorly regulated microfinance lending practices led to fast growth in consumer debt. Consumer lending in the banking and microfinance segments has been growing in double digits in 2017-2018, reaching a total of RUB 14,90 trillion (USD 230,8 million), or 14 percent of the Russian GDP. At the same time, real disposable income has been declining: as of 2018, it is 13 percent below 2014 levels. Accelerated consumer lending has been monitored by the Central Bank of Russia to adjust the supply side of consumer finance, but no in-depth assessment has been made on how this has been affecting households. To provide a demand-side assessment, the World Bank Group in cooperation with the Russian Consumer Protection Service (Rospotrebnadzor) and the International Confederation of Consumer Societies (CONFOP) conducted an over-indebtedness study in 2018-2019. The objective of the study was to take a deeper look at the increasing levels of indebtedness of` individuals in Russia, provide a demand-side view on the issue and assess potential social and economic implications. The results of the study afford a unique perspective on the issue of consumer over-indebtedness in Russia and provide Russian financial-sector regulator and consumer-protection authorities with additional context for reviewing and adjusting their existing policies in the area of consumer protection, responsible lending and related areas. The study was conducted in a form of a survey covering over 4,000 individuals in 16 Russian regions. 2020-03-30T19:43:58Z 2020-03-30T19:43:58Z 2019 Report http://documents.worldbank.org/curated/en/518651584539590418/Household-Over-Indebtedness-in-Russia http://hdl.handle.net/10986/33495 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Debt and Creditworthiness Study Europe and Central Asia Russian Federation
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CONSUMER DEBT CONSUMER LENDING MICROFINANCE FINANCIAL LITERACY INDEBTEDNESS
spellingShingle	CONSUMER DEBT CONSUMER LENDING MICROFINANCE FINANCIAL LITERACY INDEBTEDNESS World Bank Household Over-Indebtedness in Russia
geographic_facet	Europe and Central Asia Russian Federation
description	In the last three years, household debt has risen by a third as disposable income declined. Declining interest rates, ease of access to credit for consumers and poorly regulated microfinance lending practices led to fast growth in consumer debt. Consumer lending in the banking and microfinance segments has been growing in double digits in 2017-2018, reaching a total of RUB 14,90 trillion (USD 230,8 million), or 14 percent of the Russian GDP. At the same time, real disposable income has been declining: as of 2018, it is 13 percent below 2014 levels. Accelerated consumer lending has been monitored by the Central Bank of Russia to adjust the supply side of consumer finance, but no in-depth assessment has been made on how this has been affecting households. To provide a demand-side assessment, the World Bank Group in cooperation with the Russian Consumer Protection Service (Rospotrebnadzor) and the International Confederation of Consumer Societies (CONFOP) conducted an over-indebtedness study in 2018-2019. The objective of the study was to take a deeper look at the increasing levels of indebtedness of` individuals in Russia, provide a demand-side view on the issue and assess potential social and economic implications. The results of the study afford a unique perspective on the issue of consumer over-indebtedness in Russia and provide Russian financial-sector regulator and consumer-protection authorities with additional context for reviewing and adjusting their existing policies in the area of consumer protection, responsible lending and related areas. The study was conducted in a form of a survey covering over 4,000 individuals in 16 Russian regions.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Household Over-Indebtedness in Russia
title_short	Household Over-Indebtedness in Russia
title_full	Household Over-Indebtedness in Russia
title_fullStr	Household Over-Indebtedness in Russia
title_full_unstemmed	Household Over-Indebtedness in Russia
title_sort	household over-indebtedness in russia
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/518651584539590418/Household-Over-Indebtedness-in-Russia http://hdl.handle.net/10986/33495
_version_	1764478885976604672

Household Over-Indebtedness in Russia

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