Translation. Region: Russian Federation –
Source: Mainfin Bank –
How will the Central Bank of the Russian Federation combat Russians’ indebtedness?
The high level of debt burden of Russians is one of the problems that the regulator has been struggling with for several years, systematically tightening requirements and introducing restrictions for credit institutionsNow the Central Bank of the Russian Federation proposes to establish protective measures for clients MFO:
the rule of issuing one will apply loan – it will not be possible to draw up a second agreement with an MFI before the first one is executed; the regulator will establish a cooling-off period – three days must pass after the return of one loan and before a new agreement is concluded; the amount of overpayment on microloans will be reduced from 130 to 100% of the original amount.
“The key goal of the restrictions is to eliminate excessive indebtedness of the population, since most MFI clients have several loans at once, which leads to an increased burden and difficulties in fulfilling obligations,” the expert believes.
The innovations are planned to be implemented as part of the reform of the industry – the Central Bank of the Russian Federation believes that the development of bills, their adoption and entry into force will take up to three years.
What innovations await the microfinance organizations market?
The Bank of Russia not only limits MFI borrowers, but also plans to streamline the microfinance services market – information about the upcoming changes appeared in August 2024. Thus, the regulator wants to divide MFIs into three groups:
companies operating exclusively in the business segment – with entrepreneurs, legal entities, self-employed citizens; microfinance organizations issuing loans, the cost of which does not exceed 100% per annum; organizations that have received the right to provide loans at a rate exceeding 100%.
Depending on the group they belong to, the Central Bank will set requirements for the capital of companies – microfinance organizations with increased risks will have to confirm their stability with a sufficient reserve of funds.
16:30 10/22/2024
Source:
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.
http://mainfin.ru/news/one-loan-in-one-hands-the Central Bank of the Russian Federation-will-seriously-take-up-MFO