Bank of Russia starts publishing information about orders for microlenders on its website

The Bank of Russia has published information on its website about the effective orders prohibiting microfinance market participants (credit consumer cooperatives, agricultural consumer credit cooperatives, housing savings cooperatives, and microfinance companies) from performing certain types of transactions, including attracting funds and extending loans. In the future, the regulator plans to publish information about orders as soon as they are issued or the supervision over their execution is discontinued.

The Bank of Russia issues orders when it discovers violations of federal laws and Bank of Russia regulations. Supervision of compliance is discontinued when the issues that were behind the orders’ adoption have been eliminated.

The information about orders will be published in the ‘Financial Markets’ section on the regulator’s website to prevent further illegal or high-risk activity by financial institutions, which can lead to consumer rights violations.

It is important to note that restrictions imposed by the orders do not extend to other areas of microfinance market participants’ activity and, therefore, cannot hinder the repayment of funds under loan agreements and personal savings transfer agreements.