Russian bank market regulators have tightened the screws on banks in the retail sector. Russian banks have begun backing away from risk lending. VTB 24 has just announced its plans to stop providing its private clients with Visa Instant Issue card express credits with permitted overdraft. Market participants are confident that the bank is to drop its product because of the extremely high risks involved. Admittedly, terms for issuing express credits in the form of overdraft, using Visa Instant Issue cards, are practically the same as those for the most risky bank product, express credits provided in retail networks. Analysts believe VTB 24 will be followed by other retail lending leaders in the near future.
Source: WWW.KOMMERSANT.RU, March 12, 2007
