The Russians have fallen out of love with banks, and carried away microcredit

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Photo: Ilya Pitalev / RIA Novosti

Last year the Russians started to invest in microfinance institutions (MFIs). During the year the number of private investors on this market grew by 50 percent, and their total investment is 38 per cent. On Monday, February 12, RBC reports, citing a survey of market participants.

According to the Bank of Russia, in the third quarter of 2017 saw an increase in investments of natural persons and individual entrepreneurs in the MFI, which may be due to the continued decline in interest rates on Bank deposits. Over the year from September 2016 to September 2017 the volume of attracted investments has grown by a third.

The reason for the investors ‘ interest lies in finding new sources for investments on the background of constantly decreasing interest rates on deposits in banks, the survey showed. According to the Bank, for the third decade of January 2018 maximum interest rate on deposits of the ten largest banks accounted for 7.07 percent. Against this background, the conditions for MFIs to look attractive — last year they offer the yield amounted to an average of 16-20 percent.

Also growth of interest contributed to the tightening of control over the activities of the microfinance market, say market participants.

According to United credit Bureau, in 2017 the Russians took out loans to almost 5.7 trillion rubles, which is 37 percent more than the year before.

Video, photo All from Russia.



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