The Central Bank of Russia reported inspection findings that 16 banks publishing total cost of credit (TCC) ranges for subsidised mortgage loans on their websites did not account for potential interest rate increases, and it has ordered the banks to bring the disclosures into line with legal requirements. Under the law, banks must calculate TCC based on the maximum possible loan costs and make this information available to borrowers on their websites and in credit institutions’ offices. The Bank of Russia highlighted that some lenders may raise the interest rate on a subsidised mortgage loan if they learn the borrower is no longer eligible for the subsidy or has already taken out such a loan, meaning the TCC ranges should reflect that possible increase.
Central Bank of Russia 2025-04-10
Central Bank of Russia orders 16 banks to correct subsidised mortgage total cost of credit disclosures
The Central Bank of Russia found that 16 banks failed to include potential interest rate increases in the total cost of credit (TCC) ranges for subsidised mortgage loans on their websites. The banks have been ordered to align their disclosures with legal requirements, which mandate that TCC be calculated based on maximum possible loan costs.