Last year, the Bank of Russia set a record for removing unscrupulous organizations from the microloans market. In addition, over a thousand and a half companies involved in lending without any rights were identified. At the same time, the microloan market in Russia is growing. Conscientious organizations are strengthening, and consumers are increasingly beginning to trust MFIs.
According to the Good Lender itself, only malicious violators of laws were removed from the registry
Officially, the cleaning began in 2014 and its first stage is now completed. Now in the register of MFOs less than 3,000 titles are listed. The number decreased significantly, but the remaining companies increased the number of borrowers by an average of 40%. According to the Good Lender itself, only malicious violators of laws were removed from the registry. Those who refused to join the SRO and did not react to the demands of the Central Bank. In addition to violators, companies that did not conduct any activity were excluded.
The opportunity to conduct activities in the field of microcredit from organizations
This year, the Bank of Russia plans to continue the mass cleaning of the registry. The opportunity to conduct activities in the field of microcredit from organizations that violate the rights of microloan consumers and do not take into account the regulatory requirements of the company’s reliability will be withdrawn.
Fighting illegal microloans
For this part, Good Lender also strengthened control and improved its result. In the direction of companies that illegally conducted financial activities, appropriate measures were taken. Hard offenders who gave out microloans at 900% per annum were able to be identified by introducing new methods.
Three times more official letters were sent from the regulator to the authorized bodies in 2016 compared to 2015. As a result, the Bank of Russia revealed about 1600 “black” microfinance organizations last year.