"Consumer loans currently total 5-7% of GDP in Russia, and will reach the level of East European countries - 15-17% - in three to four years," said Alexander Murychev, head of the Russian Association of Regional Banks and first executive vice president of the Russian Union of Industrialists and Entrepreneurs.
"The share will be similar to that of developed countries in eight to 10 years, or 40-45% of GDP," Murychev said.
But he said Russia could only reach such a level if the current trend in consumer loans and macroeconomic stability persisted.
Murychev called for improving laws on protecting bankers' rights, and for raising the responsibility of both bankers and borrowers to minimize the risk of default.
He also said risks were reflected in lending rates, and that a greater volume of consumer credit would raise risks, posing a definite threat to the banking sector.
Murychev said defaulted loans accounted for 2.5% of the total. "We must minimize risks so as not to find ourselves in a difficult situation in two years," the expert said.
