Credit cards became uninteresting for Russians in August for the first time in five years

In August 2024, for the first time in the past five years, a decline in credit card issuance was recorded, both in quantitative terms and in rubles. Previously, the growth in card issuance was 6%-15%, and lending limits were higher by 5%-25%. The dynamics of the segment was often influenced by a seasonal factor – the readiness of children for school. This time, too, it had an impact, but the Bank of Russia’s adjustment had a greater impact – this is the opinion of experts and bankers interviewed by the publication.

The dynamics of credit card issuance has also been slowed down by the regulator’s increase in risk ratio premiums since July. They act together on the retail segments and, in addition, put pressure on the capital of banks, which are “forced to use it more sensibly,” said Mikhail Polukhin, head of the ACRA financial institutions rating group.

Experts expect a further decline in the volume of issuance in this segment. High inflation and uneven indexation of Russian incomes will also have an impact, so there will be demand for credit cards, but the limits on them will probably be lower.

In early September, it became known that the total debt of Russians on credit cards by the end of July 2024 reached a record level of 4.8 trillion rubles. The total debt of Russians increased by 42% compared to last year’s figures.