Mortgage Lending in Russia: Problems and Prospects

Abstract

Development of the market of mortgage lending in Russia is stipulated by the necessity to solve housing problems of the citizens. Under conditions of development of modern economy mortgage lending crediting becomes one of the most important elements of banking system formation of Russia. This kind of crediting is of great importance for satisfaction of economic, social and cultural needs of the citizens of the country. For last decade mortgage lending in the Russian banking market has became enough demanded banking service. The tendency, first of all, is connected with stabilization of economic and political situation in the country, decrease of inflation rates, growth of real incomes of the population and high competition in the segment of corporate banking business. Therefore, commercial banks should constantly form competent credit policy and develop new approaches to mortgage lending promoting attraction of a great numbers of clients that will allow occupying leading positions in the segment of the market of banking products. The authors study the basic problems and tendencies of the development of the markets of mortgage lending in Russia. According to the results of complex analysis key players of the market of mortgage lending are defined and crediting parametres are studied. The authors reveal the major factors influencing growth of mortgage lending and measures to increase the volumes and availability of mortgage lending are suggested.