The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Alfa-Bank CEO shrugs off retail lending curbs

Russia’s leading private sector lender looks to mortgages to maintain pace of loan growth.

Russia’s Alfa-Bank can maintain strong growth in retail lending despite new curbs on the segment, according to chief executive Vladimir Verkhoshinskiy.

In response to rising concerns about over-indebtedness among retail borrowers, the Central Bank of Russia (CBR) in October implemented a raft of new regulation designed to slow the pace of retail lending growth.

Vladimir Verkhoshinsky 160x186


Russian banks are now obliged to calculate debt service to income (DSTI) ratios for retail borrowers. Loans to consumers with high DSTI levels incur substantially higher risk-weightings. The CBR has also raised risk weights for mortgages with loan-to-value ratios above 80%.

This follows measures in April that sharply increased risk weightings for unsecured consumer loans with an effective interest rate of more than 10%. Central bankers expect the two rounds of regulation to slow retail lending growth to 10% in 2020 from close to 20% during the past two years.

One of the leading drivers of growth in the segment has been Alfa-Bank. Russia’s largest privately owned lender grew its retail portfolio by 60% last year.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree