CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Russians’ Credit Performance Remains Steady at Historic Low
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Russians’ Credit Performance Remains Steady at Historic Low PDF Print E-mail
Monday, 06 June 2016
Following a seven-year rollercoaster rise and fall, the credit performance of Russian consumers has held steady since last summer, according to data from analytic software company FICO and National Bureau of Credit Histories (NBKI), Russia’s leading credit bureau. The FICO® Credit Health Index, which started a sharp decline in January 2012, has remained at just under 90 for months. While tracking only began in 2008, FICO and NBKI believe the current bad rate is the highest ever for Russia.

The FICO Credit Health Index measures Russia’s overall credit health, based on the percentage of consumer loans and credit cards reported to NBKI that are delinquent by more than 60 days. The April index of 89 means that 16 percent of Russian credit accounts were delinquent, compared with 14 percent one year ago and just 7 percent in January 2012.

Every one of the eight federal regions tracked is below the index’s benchmark score of 100, established in October 2008. The average drop since January 2012 has been 25 points, with Severo-Kavkazskii experiencing the largest drop of 32 points and Centralnyi experiencing the smallest drop of 15 points. The regions Centralnyi (index 93), Severo-Zapadnyi (index 93) and Privoljskii (index 91) are the only regions outperforming the total population index. Severo-Kavkazskii continues to have the lowest index value at 82, and the regions Sibirskii, Uralskii and Yujnyi also have scores below Russia’s overall score.

“Delinquencies have definitely levelled off,” said Evgeni Shtemanetyan, who directs FICO’s operations in Russia. "The long fall in the index represented a period of rapid growth in consumer credit, particularly in higher-risk credit cards. To prevent further spikes in credit risk and losses, Russian credit risk managers should seek out best practices in managing their customers, particularly those who have higher levels of unsecured debt.”

“By the beginning of 2016, the share of ‘bad’ loans in the portfolios of creditors had reached its highest point,” said Alexander Vikulin, CEO of NBKI. “Although the level of overdue loans in retail lending remains high, its growth rate is significantly lower than in 2014-2015. This makes it possible to talk about the gradual stabilisation in the retail lending market. At the same time, Russian borrowers’ ability to service their credit obligations is complicated by the continuing decline in their real incomes. Therefore, there is still a high risk that the rate of growth of overdue debts and the onset of defaults will resume."
 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197