The microfinance market in Russia cannot be ignored, and the state plays a central role in guiding its development. Without active oversight, risks would surface that could invite criminal activity and undermine financial stability. This assessment comes from a conversation with Nikolai Kulbaka of 360.ru, who emphasizes the necessity of state involvement to maintain order and ensure predictable operations within the sector.
Kulbaka points out that the market relies on government support to function safely. He warns that if authorities step back, the chance of criminalization would grow, jeopardizing both lenders and borrowers. In his view, the Central Bank’s reform proposal offers a path forward by dividing the market into three segments: entrepreneurial financing companies, targeted financing, and traditional microfinance institutions. The aim is to segment activities, assess the specific risks tied to each category, and streamline risk management for stakeholders across the board.
The economist stresses that regulators need clear guidance and robust organization to implement these reforms effectively. He notes there is a logical logic to creating a structured framework that can foster safer lending practices and reduce uncertainty for market participants.
Looking ahead, Kulbaka forecasts that these plans will not take full shape before 2025 to 2027. He adds that tangible outcomes will become clearer only after the release of official documents detailing the proposed changes and the steps involved in their execution.
The Central Bank has already signaled that reforms would allow some high-cost lending terms to persist under the MFO umbrella, with planned revisions to prudential standards tailored to each category of lenders. It also highlighted the challenge of rebuilding trust among Russians, noting that both entrepreneurial lenders and POS lenders face this deficiency, which remains a major hurdle for wider acceptance of microfinance services.
Recent data indicates that Russians collectively owe a record sum to microcredit organizations, underscoring the scale of demand and the importance of effective regulation to prevent reckless lending and protect borrowers while preserving access to capital for small businesses and individuals in need. The clear takeaway is that reform efforts are ongoing, with careful planning required to balance expansion, risk control, and consumer protection in a rapidly evolving landscape. [Source: 360.ru interview with Nikolai Kulbaka]