Moscow. May 11. The US Treasury warned about the instability of business models of new generation financial institutions, specializing in online lending, and required enhanced oversight at the Federal level and increase transparency in this segment.
In particular, experts of the Ministry of Finance is recommended to create a single public database to track information about loans. Special attention they pay to regulate companies that lend to small businesses: it is proposed to exclude them from some aspects of Federal law on the protection of consumers, reports Bloomberg.
“Definitely the market is the need for greater transparency for borrowers and investors”, – noted in conversation with journalists the adviser of the Ministry of Antonio Weiss.
The Ministry of Finance recommends that the regulators to create a special group to study the issue and identify the way forward.
The report of the Ministry of Finance was published on Tuesday. And in the beginning of the week in the United States broke the scandal surrounding the company LendingClub, one of the leaders in this sector. Shares of LendingClub, the ninth of may fell by 35%, its market capitalization has dropped to approximately 20% of the level at the IPO in December 2014.
Chapter LendingClub Renaud Lapland left the company after an internal investigation established that in March and April of this year, LendingClub was sold to one of the investors (according to sources, it was the investment Bank Jefferies) pool of loans of $22 million was Later revealed that the quality of loans did not meet the requirements of the client.
Companies like LendingClub, Prosper Marketplace Inc., OnDeck Capital Inc., appeared on the market about ten years ago. They often position themselves as intermediaries between two individuals – potential borrowers and wealthy people who are willing to provide them with funding.
With the development of the industry a hedge-funds, asset managers and other players wall street began to buy up these loans.
In 2015, the lending volumes in this segment in the United States exceeded $ 20 billion, according to data from Morgan Stanley. By the end of the decade, this figure could jump to more than $ 120 billion, predicts the Bank.
Over time, there are new types and platforms online lending: at present, there are sites, funding small business, those who help people to find the money for expensive treatment, those who consolidate credit card debt and student loans.
Such companies are required to comply with the laws of the individual States but at the Federal level is not always the regulator, which they must obey, as is happening with the banks. The banking Association has repeatedly urged Washington to create equal and fair conditions for all participants, providing credits in one form or another.