Why do banks do not want to issue currency loans?

In Russia, the Russian ruble is the generally accepted currency. Abroad, the generally accepted currency is other cash equivalents — the dollar, the euro, and others. Citizens living in Russia sometimes want to get a loan not in rubles, but in currency. And faced with bank failures. Why this happens — we understand in our material.

The reasons for this can be a lot. This may be due to study abroad — to pay for study. Perhaps citizens thus want to earn on the difference between the ruble and other currencies. Causes can be different. But the ability to take a loan in the currency sharply decreased.

It’s no secret that the course of the euro and the dollar in relation to the ruble is unstable. There are quite long races of the course. Consider the situation is quite banal. A citizen has a loan in euros. He is consistently paying it. There is a sharp jump, and the euro is becoming more expensive twice, compared with the course when a loan was taken.

The salary of the citizen remains unchanged — because the currency jump is not displayed on wage growth. But the monthly payment will increase.

Either a citizen will have a very small amount for its monthly needs, or he will not fulfill its monthly obligations. In case of non-fulfillment of monthly liabilities, overdue payments will go, and it is not a fact that next month it changes. In this situation, the bank will go in minus, since any bank wants to return their funds back.

Do not issue currency loans. The risk of banks in the case of non-fragile loans in the currency will decrease.

If we compare the time until 2008, and the present, we can conclude that you wanted to take a loan in the currency significantly declined. For what reason, you ask. Everything is simple.

After the crisis, citizens became much less interested in currency loans and investments, since the course is unstable. But in order to maintain the possibility of issuing currency lending, it is necessary to invest banks in advertising in advertising, in marketing, to attract attention to their bank. From the point of view of financial equilibrium, it is unprofitable to banks. Because the demand for currency loans has decreased. Many banks report that they do not plan to revive currency lending.

Currency lending quite decreased, but in some banks it is still present. The risk of banks is quite clear, and indeed, no always currency lending is beneficial for people dealing with the Russian ruble. The situation with the currency is not easy, so the banks are recommended to prefer Russian currency to preserve money. We hope that the information in our article was useful to you.