In order to prevent the so-called “bubbles” from emerging in the mortgage market, the Bank of Russia is monitoring the quality of loan services in this area, Head of Russia’s Central Bank, Elvira Nabiullina said at a meeting with President Vladimir Putin.
Ms. Nabiullina noted that earlier Russians used to apply to banks for loans for consumption purposes, whereas now mortgages account for 44% of all loans issued. When compared with the figures of five years ago, there is a 17-percent growth.
At the same time, the rapid development of mortgage lending carries some risks. So, Nabiullina drew attention to the need to closely monitor the quality of this service.
“We know many countries (with mortgage - editor’s note) bubbles, and, of course, we should not let this happen in any case”, Nabiullina added.