The Central Bank has done a massive cleaning of the market of microfinance organizations


The first stage of cleaning of the market of microfinance organizations, started in 2014, finished. At the end of 2016 in the state register of MFIs remained 2687 organization, during the year, it left a record number of participants — more than 1.7 million, However, the process has affected mainly the weak players, strong, on the contrary, has increased over the past year the number of borrowers 40%, according to the Central Bank.

In the fourth quarter of 2016 from the registry have been removed 689 MFIs. These are organizations that systematically violated the law, has not entered into the self-regulatory organization (SRO) and does not meet the requirements, explained in the CBA. Also got here the so-called non-viable institutions, that is not operating. For comparison, during the third quarter of 2016 from the registry was derived 468 MFIs, which was a record decline in the number of market participants since the end of 2014. For the full year 2015 the registry left 1681 organization for 2014 — 1329.

Control of the MFO transferred to the Central Bank since September 2013 in the framework of creating a mega-regulator. During this time, adopted a number of legislative acts and instructions of the Central Bank. In particular, today, all MFIs are required to fulfill the standards of the Ministry of Finance on the part of ostatochnoi own funds and liquidity must comply with the defined regulator value total cost of credit (PSK) and transmit data about borrowers in the credit Bureau. In 2016, all MFIs had to engage in self-regulatory organizations. Then a law was passed about the division of the market for microfinance (IFC) and a micro-credit company (ICC).

According to the CEO of online lending MoneyMan Boris Batin, key events that influenced the care of illegal market players, happened in 2016. The main influence, he said, had a law on the division of the market by the IFC and ICC. “Today in the registry of the regulator was 2,5 thousand companies. That’s a lot. Capital above the required threshold for the IFC have about 100 organizations,” says the Batin, noting that active lead “hundreds of organizations”, and 90% of the total market accounted for 50 of the largest companies.

However, in 2017, the Central Bank intends to implement a second stage of cleaning of the MFIs market. From the registry will be deleted information about the organizations not complying the rules of the game, that is in violation of the law and the rights of consumers of financial services do not meet requirements for financial stability and reliability (regulations and reserves), according to the Central Bank. However, the cleaning process will not be as widespread and extensive as in 2016. The employee of the press service of the regulator noted that, despite a significant reduction in 2016, the number of MFIs included in the registry, the total portfolio of their loans in 2016 rose more than 20%, and the total number of borrowers of the organizations increased by more than 40%.

Detailed statistics on the MFI’s for the year 2016 not yet published. According to the National Bureau of credit histories for the first nine months of 2016 MFIs have issued a record amount of loans — to 109.8 billion rubles, the Growth rate in the third quarter, 23.2% higher than the previous quarter. According to the SRO of microfinance organizations Mir, the number of prisoners in July—September contracts increased by more than 74% compared to the same period of 2015.

Managing Director at “E loan” the League of dead body believes that the driver of growth in 2016 for the steel market online payday loans. In addition, a significant contribution was made by the Bank to the MFI. “Many of the customers came in MFIs, as banks still not regained pre — crisis pace of lending,” – said the Corpse, adding that, according to the “E loan”, 74% of clients of MFIs applying for a loan, already got a Bank loan.

Marketing Director of National Bureau of credit stories Alexey Volkov noted that in 2016, many MFIs have improved the quality and adaptability of risk management. This allowed them to significantly increase its customer base. Due to the specifics of the (relatively small amount of loans and credit terms), the economies of many MFIs involves making a profit from the customer when re-loans. The first loan is usually on the level of profitability, says Volkov.

The main contingent of the MFO remain regular borrowers, having satisfied himself that the microloans can be used more often, agrees Director of the service of online loans “Robot Timer” Sergey Sedov. At the same time, he adds, the part of the borrowers, faced with high requirements of banks during the crisis and refused, also stelae borrowers of MFIs.

At the same time banks by the end of 2016 did not feel the reduction in client activity. Representatives of the top 10 largest retail banks surveyed , reported that at year-end was not noted reductions in demand for consumer loans. The banks have assured that growth of sales was observed for all types of credit products for individuals. The most popular among unsecured loans were loans for the purchase of consumer electronics, communication, furniture and clothing.

However the MFI clients can be young people without a credit history, said Sedov. According to him, the decline in real income of Russians, identifiable and in 2016, for the third consecutive year is one of the main factors of demand for microloans. “According to our research, a significant proportion of borrowers are under the age of 25, have no credit history,” says Sedov.

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