The Central Bank of Russia has proposed to divide the microfinance market into three segments in the next three years. This is stated here report Central Bank for public consultations.
The microfinance organizations (MFOs) market is proposed to be divided into three categories: business finance companies; target finance companies and microfinance companies.
At the same time, institutions offering the most expensive loans (over 100% per annum) will continue to operate as MFOs, and prudential standards are planned to be revised for each category of institutions.
It is stated that one of the problems in the development of microfinance is the low trust in this market. Institutions that finance entrepreneurs, provide POS loans and installment opportunities and do not increase social risks also face this situation. On the contrary, the report states that these institutions encourage the supply of goods and services with reasonable interest rates.
August 1st at the Federation Council accepted The possibility of strengthening responsibility for illegal activities of microfinance organizations (MFOs) in Russia.
Before that, Federation Council Speaker Valentina Matvienko suggested that the Central Bank ban the activities of all microfinance organizations in Russia. However, the head of the Central Bank of Russia, Elvira Nabiullina, warned that such a step would lead to a shift towards the illegal sector, which would harm citizens.
Previously a lawyer explainedWhat should you do if scammers borrow money from you?
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Source: Gazeta
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