In the first nine months of this year, the volume of consumer and auto loans issued in the national currency has decreased by more than half, according to data from the Central Bank reviewed by Spot.
From January to September, citizens took out auto loans amounting to 12.79 trillion sums, which is 2.36 times less than the corresponding figure from last year. The peak monthly figures were recorded in January, April, and May, with 1.7 trillion sums issued each month.
Consumer lending has shrunk 2.4 times—from 32.54 to 13.05 trillion sums. The highest volume of retail loans was granted in April and May (approximately 1.8 trillion sums).
In September, auto lending reached its lowest point since February 2022. In the third quarter, the issuance of auto loans plummeted by more than three times compared to the same period last year.
Photo: Central Bank / Spot
Reasons for the Decline in Lending
In September of last year, the Central Bank tightened requirements for banks regarding the issuance of auto loans. Thus, the share of loans for vehicle purchases in the banks' loan portfolios should not exceed 25% due to risks associated with loan concentration.
As of July 1, the Central Bank tightened the criteria for lending to the public. The regulator introduced a debt burden indicator calculated as the ratio of average loan payments to the borrower's average monthly income.
This parameter is already being used in micro-lending to individuals. The issuance of microloans has been limited to half of the borrower's income.
From July 1, the lending limit is set at 60%, and from 2025, it will be reduced to 50%.
Additionally, the Central Bank has tightened requirements for issuing mortgage and auto loans to citizens. When assessing the credit risk of borrowers, an additional indicator— the "loan/collateral" ratio—will be taken into account.
In July, the CEO of the ADM Jizzakh automobile plant, Daniyar Davletiаrov, stated that the Central Bank had introduced "unofficial restrictions" on the issuance of auto loans. This year, he expects a 15% drop in car sales, down to 350,000 units.
Previously, Spot reported that in October, the Central Bank fined seven banks and two microfinance organizations.