the Index of credit health of Russians (Credit Health Index) rose in the IV quarter of 2019 from four points to 96 points 92 points in the third quarter. Thus, the index of credit health of Russians returned to the level observed in the IV quarter of 2014 (96 points).

the share of “bad” borrowers (bad rate) decreased by 1.71% to 13,25% from 14.96% in the third quarter of 2019, said the National Bureau of credit histories (NBCH).

“In the fourth quarter of 2019. improvement of credit health was recorded in all Federal districts (FD) of the Russian Federation. The most significant growth rate was observed in the Volga, Siberian, Ural and southern Federal districts by four points. In turn, in the Central, far Eastern and North-Western Federal district the growth index was three points. The least index rose in the North Caucasian Federal district — by two points,” emphasizes NCB.

In three Federal districts the index stood above the nationwide figure. In the first place is the Central Federal district (100 points). Followed by Privolzhsky and Severo-the Western district (98 points), Ural and South County (for 95 points), far Eastern and North Caucasian district (92 points), and also in the Siberian district (89 points).

When calculating the index take into account the share of bad debts among the total number of debts. As “bad” considering the loans overdue more than 60 days in the last six months.

the First value of the bad rate set as the initial value of the index is 100 points. The index is determined so that a decrease of 20 points represents a doubling of bad rate, and an increase of 20 points — decrease bad rate twice.

“in 2018, the Emerging trend of decrease of the index credit health of Russians in 2019 changed, first to stabilize, and by the end of the year — a major increase of this indicator,” said endirectoR nbki Alexander Vikulin.

According to him, the credit health of Russian borrowers has improved to levels observed in 2014 At the same time reducing the proportion of “bad” borrowers to 13% suggests that banks carefully monitor the situation with credit risks of customers. “In particular, in connection with the introduction by the Bank of Russia the calculation of debt burden indicator (PDN), which became mandatory for all creditors,” — said Vikulin.