The Central Bank intensified supervision of microfinance organizations

During the first working week of the year, the Central Bank introduced restrictions on the issuance of loans in three microfinance companies at once. The reason was the excess of the permissible share of loans from clients with a high debt load (more than 80%). The Bank of Russia has been applying this strategy since the end of last year, including against the background of tightening regulation of the credit market. Experts expect that as a result, 200–250 microfinance organizations will leave the market in 2024, up to a quarter of their total number.

On January 11, the Bank of Russia suspended the activities of three microfinance organizations (MFOs). The regulator’s instructions were received by MCC Amsterdam, Jet Money Microfinance and VeneraFinZaym. The reason is the excess of the permissible share of loans to clients with a debt burden above 80%. MCC Amsterdam, Jet Money Microfinance and VeneraFinZaym did not promptly respond to Kommersant’s request.

In fact, the Central Bank has intensified this practice since the end of last year, but in general, in December, restrictions were introduced in relation to only four microfinance organizations. Previously, such decisions were made once every two to three months.

In accordance with the law, the deadline for fulfilling the Central Bank’s order cannot exceed 30 days. “As a general rule, failure to comply with an order of the Bank of Russia within the prescribed period entails the imposition of an administrative fine on officials in the amount of 20–30 thousand rubles; for legal entities – 500–700 thousand rubles. If an MFO commits regular violations and does not comply with the instructions of the Central Bank, this is a direct path to exclusion from the register,” explains Ilya Zharsky, managing partner of the Veta expert group.

There will most likely be similar regulations this year, but “it’s too early to talk about intensifying regulatory cleanup,” the SRO “MiR” believes.

Not all MFOs were able to adapt to the tightening of the threshold values ​​of macroprudential limits (MPL), in addition, since January, the inclusion of microloans in the amount of up to 10 thousand rubles in the MPL calculation base. will entail additional difficulties for companies, believes Ivan Uklein, senior director for bank ratings at the Expert RA agency. Because of this, according to Expert RA forecasts, 200–250 companies may leave the market in 2024.

At the same time, the influx of new MFOs is drying up as the regulation of the segment converges with the banking sector. A massive relocation of players to the gray zone should not be expected, Mr. Uklein clarifies, since “most of the exclusions from the register represent a voluntary surrender of the license and subsequent departure from the market.”

In addition, notes Alla Khrapunova, an expert at the ONF “For Borrowers’ Rights,” the Bank of Russia “has set up a clear system of control over illegal lenders,” including companies that have been excluded from the register. In particular, in cooperation with law enforcement, irresponsible owners are held accountable, Ms. Khrapunova emphasizes.

Rather, according to the expert, market consolidation may occur – large players will increasingly win over clients of small and medium-sized companies.

At the same time, Ms. Khrapunova believes, the selection of clients will become more conservative. The struggle for the loyalty of “good clients,” she adds, “will reveal new solutions” and can lead to the development of MFO products and services.

Polina Trifonova