Russia’s credit delinquencies have continued to rise in the second quarter of this year, data released by FICO and the National Bureau of Credit Histories (NBKI) reveals.
The country’s FICO Credit Health Index has fallen by one point to 108 since Q1.
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In January 2012, 7% of Russian credit accounts were delinquent. This has since risen by 2%.
Centralnyi is the only region to have maintained a steady credit health. All other regions have shown a continuous quarter-on-quarter drop since January 2012, with the Severo-Kavkazskii region experiencing the largest fall (five points) in borrowers’ credit performance.
Alexander Vikulin, chief executive of NBKI, said strong growth in high-risk sectors of the credit market, unsecured consumer loans and credit cards are the cause of the declining Credit Health Index.
“While this quarter’s FICO Credit Health Index shows only a small increase in delinquency, the overall trend suggests that Russians are finding it harder to pay off unsecured loans and credit card balances,” said director of FICO’s operations in Russia, Evgeni Shtemanetyan.
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By GlobalData“Therefore it’s especially important for banks to closely monitor borrowers’ repayment behaviour to ensure their strategies are still in line with desired business objectives.”
The number of consumers in the NBKI database has grown by 28% to over 60m in the past year.
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