Source: Central Bank of the Russian Federation in English
6 November 2020
Starting from January 2021, 90% of microfinance institutions (small microcredit companies) (MCCs) and consumer credit cooperatives (CCCs) will come under the exclusive supervision of self-regulatory organisations (SROs).
Participants in the meeting of the Expert Council on Microfinance and Credit Cooperation discussed the readiness of SROs to accomplish this task, as well as the challenges of their upcoming supervisory activities.
SROs will collect and analyse the reports of small microfinance institutions and send the processed information to the regulator. In addition, SROs will inform the Bank of Russia about the detected violations, including the grounds for withdrawing a particular company from the market. Microfinance companies, large MCCs and CCCs will remain under the direct supervision of the Bank of Russia.
According to the Bank of Russia, which evaluated the control activities of SROs, the quality and detail of inspections carried out by self-regulatory organisations has increased significantly over the past two years. In addition, the regulator provides special training for SROs of microfinance organisations (MFOs), CCCs and agricultural credit consumer cooperatives (ACCCs) to share supervisory experience. The training programme is expected to run through July 2021. At the same time, the Bank of Russia will continue to monitor SROs’ performance of their supervisory functions.
Representatives of self-regulating organisations believe that the benefits of such a division of powers lie in the exclusion of duplication of requests and measures of influence, and the reduction of load. It was also noted that SROs are capable of giving a flexible response to any new malpractices by amending their internal standards.
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