On monitoring P2P lending market participants

Effective July 2015, the Bank of Russia introduces a procedure to monitor P2P (peer-to-peer, or person-to-person) lending projects to thoroughly study the current market processes and prepare proposals to regulate this segment of financial services.

Р2Р lending processes which enable private individuals to give loans directly bypassing the traditional financial institutions as mediators have gained ground in the Russian Federation of late. Usually, lending takes place online (where the user can act both as a lender and a borrower) and turns out to be too risky for the individual acting as a creditor.

Decision to collect and analyse data is made in the wake of a number of consultations with P2P lending market key players. Monitoring summaries are expected to be available on the Bank of Russia website on an annual basis.

As of today, regulation and supervision of P2P lending market participants does not exist. The Bank of Russia draws special attention of the citizens to the high risks P2P service users are currently facing considering today’s level of the market development.

The reference to the Press Service is mandatory if you intend to use this material.

22.06.2015 00.00.00