1. Reduction of the total portfolio of loans to SMEs. Due to the data for the 1st half of 2012 the total portfolio of loans to SMEs increased by 10% and amounted to 4.3 trillion rubles^[1], but in the first six months of 2014 portfolios of bank loans to SMEs grew by only 4% (8% in the same period of 2013) to 5.4 trillion rubles. If we compare the growth rate of SME portfolios in the 12 month period (01.07.2013-01.07.2014), it was 10%, versus 15% for the period 01.07.2012-01.07.2013.(Pic 3) This is due to the current political and economic situation in the world. As "Expert RA"   predicted at the beginning of 2104, the growth rate of the portfolio of SMEs for the first time in the last three years were lower growth rates of big business. Restricting access to foreign capital markets forced the Russian big business mostly be funded within the country, which allowed to overtake the pace of lending to SMEs.
2. There has been a decline in the average life of the loan. Here we need to make a reservation. This decrease was due to fears of a second wave of the crisis due to which there was a general simplification of loan products. Thus, the results of the 1st half of 2012, are such that 56% of loans were issued for terms up to 12 months, while the share of loans over 3 years is only 16%, which is provided by state-owned banks. Experts note that the loans were taken mainly on short-term needs, for example to cover cash gaps. There were virtually no requests aimed at business development.^[2] In 2013 and 2014 the situation has not changed. Banks still prefer shorter loans of less than one year for small businesses.
3. The negative trend in 2013 and 2014 was the deterioration of the quality of the portfolios of large banks. Large banks more than other market participants reduced the amount of loans to SMEs. One of the reasons was the in-line lending (“credit factory”).  By itself it carries greater risks due to the fact that an individual assessment of the borrower is not performed. According to experts from major banks, every 8th ruble portfolio is expired. However, small banks managed to maintain in 2013 the quality of assets like at the beginning of 2012 as they continued to use their own assessment models for SMEs. In small banks overdue loans in the portfolio are approximately 4%.^[3]
4. One of the major trends in 2013 was lending to individuals as business owners. This type of loan is quite simple in design and does not require a large number of documents. The time spent to give such loan is significantly less than on a loan that is taken on the organization itself. In addition, most banks, lending to individuals as a business owner don’t ask to confirm the use of funds, ie, the borrower does not need to verify the documents on which he spent a loan, while lending to the firm implies such confirmation .

^[1] Source: Rating Agency” Expert RA”, lending to small and medium-sized businesses in Russia,2012

^[2] Source: Rating Agency” Expert RA”, lending to small and medium-sized businesses in Russia,2012

^[3] Source: Bank of Russiadata