MOSCOW - Automotive credits are becoming more and more popular among Russian banks, according to Vremya Novostei. Rates are becoming lower, terms more convenient and new players appear in this field.
Only state banks, Alfa Bank and Rosbank do not have their own credit program for car buyers now, while the latter is preparing one. Even banks that are not leaders in this field have automotive credits portfolio of less than $20 million, and the total volume of credits for the next one to three years is hard to evaluate, as the market “grows in geometrical progression and any evaluation quickly becomes obsolete,” according to the head of Interfax’s bank department, Mikhail Matovnikov.
But this not only means convenience for borrowers, it also means risk for the bank. “A frequent situation in today’s Russia is when turnover is increased while the control of the borrower’s reliability is decreased,” Alexander Antonov, Akademchimbank president, said.