Microfinance Market Department
The Microfinance Market Department monitors and supervises compliance with the requirements of laws by microfinance market participants and the self-regulatory organisations (SROs) uniting them, is engaged in the development of the microfinance market, and within its competence takes part in the elaboration of the regulation of microfinance market participants’ and SROs’ activities.
Microfinance market participants comprise microfinance organisations (MFOs), credit consumer cooperatives (CCCs), agricultural credit consumer cooperatives (ACCCs), housing savings cooperatives (HSCs), and pawnshops.
The Microfinance Market Department supervises and controls microfinance market participants’ operations directly (with the engagement of the Bank of Russia’s regional branches) or through SROs. In order to streamline the control environment, the Microfinance Market Department provides SROs with the necessary tools, methodology, and training materials.
Regulation, control and supervision of microfinance market participants and SROs are aimed at ensuring the sustainable development of the microfinance industry, the efficient management of risks emerging in the microfinance market, and the protection of the rights and legitimate interests of financial service consumers.
Furthermore, the Microfinance Market Department implements the principles of proportionate regulation and risk-based supervision which imply that regulatory and supervisory requirements are set with account of the level of risk typical of the operation of a particular microfinance market participant.
Given that the general public’s confidence in the microfinance industry is essential for its advancement, the Microfinance Market Department is engaged in the elaboration and implementation of measures promoting an appropriate perception of the microfinance market by society in general and improving consumers’ confidence in the services offered by microfinance market participants.