Banks cut limits on credit cards by almost ₽10 thousand over the year.

The average limit on bank credit cards issued to Russians in December 2020 amounted to 65.4 thousand rubles, follows from the statistics of the United Credit Bureau (OKB; 50% owned by Sberbank), which was reviewed by RBC. A year ago, the limit was noticeably higher - 73.8 thousand rubles, the current level is the lowest since June 2017.

“The credit card segment is considered risky for banks, therefore, in the face of uncertainty amid the first and partly second wave of coronavirus, they decided to tighten credit policies in this segment,” OKB CEO Artur Alexandrovich told RBC.

Compared to November, the average limit on a credit card decreased by 6.5%, while the issuance of cards grew, according to the bureau. Banks entered into 917 thousand loan agreements (+21% against November) for 60 billion rubles. The volume of loans for the month increased by 13% and was the highest since March 2020, although it decreased in annual terms. Banks need to fulfill their lending plans, but stick to a certain level of risk, Alexandrovich points out: the number of borrowers increased in the pre-New Year season, so “it made sense to issue more credit cards, but with a lower limit.”

The trend is confirmed by data from the National Bureau of Credit Histories. “Indeed, in December 2020, the average limit on credit cards decreased slightly compared to the previous month - by 4.5%, or by 3.1 thousand rubles, to 65.4 thousand rubles. (in November 2020 - 68.5 thousand rubles),” says Alexey Volkov, Marketing Director of the NBKI. Banks are now quite conservative in issuing new cards and focus on borrowers of high credit quality, he points out, changing limits on credit cards allows them to manage credit risk.