Microfinance institutions adapted to the new regulation 05:54

Microfinance institutions continue to show growth and increase their issuance volumes and profits despite the Central Bank’s regulatory changes in 2023. As the agency stated “Expert RA” His review found that last year the market set new records for microcredit issuance and profits.

The volume of loans granted increased by 30%, reaching 1 trillion rubles; This compares with a 22% increase over the previous year. MFOs that successfully adapted their models to new requirements earned a record profit of 57 billion rubles.

However, the difficulty of small companies in adapting to new regulations led to a record number of exits from the market. As a result, 153 microfinance institutions were removed from the Central Bank registers in 2023, which means a significant decrease in the number of operating companies (1009 companies remained on the register as of January 1, 2024).

The Central Bank significantly tightened the rules last year, reducing marginal interest rates and maximum overpayments for microfinance institutions. However, thanks to the high adaptability of the market and the further development of the sector, microcredit issuance is expected to increase by 25% by the end of 2024, and its profitability is expected to increase by 39%.

Formerly a microfinance institution tested to collect a debt from another Russian.

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Source: Gazeta


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