Association "Russia": the lending market needs to be supported urgently
According to Association of Regional Banks of Russia (Association "Russia"), the bank sector is in a rather bad state concerning to new credits issuing. In comparison with June of 2008, now, the number of mortgage applications in banks – members of Association "Russia" – has reduced by more than 7 times, auto credit applications – by almost 5 times, small and middle-sized business credit applications – by 4 times, applications for consumer loans for buying semi-durable and durable goods – by more than 3.5 times.
Anatoly Aksakov, president of Association "Russia", thinks, that such credit demand decreasing results banks assets reduction, which are 2% as less as it was at the beginning of 2009, and now they are only 27.8 trillion roubles.
Association "Russia" estimates, that the lending market has been thrown back to the level of 2002-2003. And, the current situation needs some immediate actions to be taken to liven up lending, because lending downswing causes internal demand decrease, gross output fall and consumption decline.