The Financial Stability Council meeting considered measures aimed at reducing excessive borrowing by the population. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
During the meeting, a number of measures were discussed aimed at reducing the debt burden of borrowers and mitigating risks in the retail lending market. These include:
- 01introduction of a sectoral countercyclical capital buffer for loans to individuals;
- 02improving the methodology for determining income when calculating the debt burden ratio;
- 03setting maximum amounts for unsecured consumer bank loans and unsecured microloans.
Also under consideration is imposing restrictions on issuing unsecured consumer loans to citizens with overdue debt exceeding 90 days.
According to the National Bank, as a result of previously adopted measures, the growth rate of consumer lending has slowed. Monitoring of the retail lending market continues.
The National Bank monitors the debt-to-income ratio (DTI) for auto loans, mortgages, and unsecured loans.
"If risks increase in the retail lending segment, the National Bank may consider setting differentiated limit values of DTI for certain types of loans and total debt," the statement said.
The meeting also discussed restructuring of problem debt of individuals, improving debt write-off mechanisms, and implementing bankruptcy procedures.
The debt-to-income ratio is an indicator showing what portion of a person's monthly income goes to loan payments. In simple terms, this ratio helps assess a citizen's ability to repay debt.
If a limit level is set on this indicator in the future, banks will not be able to issue new loans to citizens with excessive debt.