Russian monotowns residents’ living conditions as the basis for estimation of households’ sustainable lending potential

SHAFIROV L.A.
Candidate of Sociology (PhD), MBA (St. Gallen University), Executive DBA Student at the Financial University under the Government of the Russian Federation, Executive PhD Student at SKEMA Business School (Lille, France)

TERRA ECONOMICUS, 2013, Vol. 11 (no. 4.3),

p. 208-217

Over-indebtedness of Russian households reveals itself not merely in high indicators of debt burden, but, which is more important, – in prevalence of high risk, unsecured, non-purpose, short term loans in Russia’s consumer lending sector. Alternative credit products – purpose long-term consumer loans – which are to be created and implemented with the assistance of regional and local authorities (namely, in depressive territories of the Russian Federation which are, mainly, mono-industrial towns), are considered to be the rational choice for the monotowns residents. The factor of local economic development, households’ credit potential could provide an extra budgetary source for special development programs for mono-industrial towns. The study of socio-economic performance indicators which characterize living conditions of monotowns residents based on the Integrated Surveillance of living conditions provided by the Federal State Statistics Service of the Russian Federation, has shown that the majority of the surveyed households needs somehow or other to improve their living conditions. Thus, the survey findings revealed the credit potential of the residents of mono-industrial towns, – caused by the need for credit resources to improve living conditions, – which can be transformed in the future into consumer demand for the appropriate credit products.

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Keywords: consumer lending; household credit potential; credit rationalization; sustainable lending to individuals; local economic development; monotown; living conditions

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606