The greater the burden they can afford, and vice versa. Let’s say a person has a critically high DTI – 80% – which taiwan telegram data means they have only 20% left for all other expenses. Approving new loans for them is extremely risky. And it is also dangerous for the borrower to get into even more debt. Therefore, we limit lending to such borrowers using macroprudential limits. For example, now such a person will not be able to get a new credit card until they pay off part of the debt and thereby reduce their burden. We also classify borrowers who have to pay off 50 to 80% of their income in debt as a high-risk category.
The data shows that they are more likely
to be late than those who have to pay less than half of their income. Therefore, there are also limits on them: the share of loans to such borrowers may not exceed 15% of cash loans issued by the bank.
Addition to such direct restrictions
we apply macroprudential surcharges. This is a tool that determines what part of the loan the bank must finance from its own funds (and not from attracted deposits). Accordingly, it affects the profitability of loans for the bank. For example, usually for every 100 rubles of credit, the bank needs to have 8 rubles of its own funds. And for 100 rubles of a consumer loan at a rate of 40%, a borrower with a DTI of 80+ will need not 8 a revolutionary ai model rubles, but 40 rubles of capital, which should go into the buffer until the end of the loan term. This is costly for the bank. Thus, we kill two birds with one stone – banks alb directory issue fewer risky loans and form a capital buffer that will protect them if the situation worsens.
