BANKS’ PRESENCE ON RUSSIAN MICROFINANCE MARKET: REASONS, TRENDS, CONSEQUENCES
Journal: BULLETIN OF KEMEROVO STATE UNIVERSITY. SERIES: POLITICAL, SOCIOLOGICAL AND ECONOMIC SCIENCES
Volume 2 № 1
, 2017
Rubrics: ECONOMICS SCIENCES
Authors:
1.
Kemerovo State University
Kemerovo, Russian Federation
Kemerovo, Russian Federation
2.
Kemerovo State University.
Type:
Article
Pages:
from 47
to 52
Status:
Published
Received:
24.07.2017
Accepted:
24.07.2017
Published:
24.07.2017
Language:
Russian
Keywords:
microfinance institution, microfinance, microfinance company, microcredit company, bank, «bank» MFI, «non-bank» MFI.
Abstract (English):
The article deals with the problem of banks’ active entering on the microfinance market through bank-affiliated microfinance institutions (MFI). The subject of this article is Russian MFI’s market; aims of this article are to reveal consequences of bank’s expansion on microfinance market and to develop recommendations for further functioning considering current trends. During the research there has been shown a specificity of MFI’s functioning; also there have been considered MFI’s functions and there has been given a description of MFI’s main forms, i.e. microfinance company and microcredit company. Reasons of banks’ entering on MFI’s market have been analyzed. Actual consequences of “bank” MFI’s entering the microfinance market have been reflected. As a result of the research, a conclusion has been drawn about the fact that banks’ presence on microfinance market is at variance with its origins – microcrediting of population and subjects of small and medium business on reductive conditions. For the protection of MFI’s market’s origins it has been advised to divide this market into two segments (“bank” and “non-bank” segments) with their own approaches in regulation. Such market’s segmentation would allow one to ensure competitive advantages for different kinds of MFI which should provide profitable condition of crediting for multiple groups of borrowers.
The article deals with the problem of banks’ active entering on the microfinance market through bank-affiliated microfinance institutions (MFI). The subject of this article is Russian MFI’s market; aims of this article are to reveal consequences of bank’s expansion on microfinance market and to develop recommendations for further functioning considering current trends. During the research there has been shown a specificity of MFI’s functioning; also there have been considered MFI’s functions and there has been given a description of MFI’s main forms, i.e. microfinance company and microcredit company. Reasons of banks’ entering on MFI’s market have been analyzed. Actual consequences of “bank” MFI’s entering the microfinance market have been reflected. As a result of the research, a conclusion has been drawn about the fact that banks’ presence on microfinance market is at variance with its origins – microcrediting of population and subjects of small and medium business on reductive conditions. For the protection of MFI’s market’s origins it has been advised to divide this market into two segments (“bank” and “non-bank” segments) with their own approaches in regulation. Such market’s segmentation would allow one to ensure competitive advantages for different kinds of MFI which should provide profitable condition of crediting for multiple groups of borrowers.
Keywords:
microfinance institution, microfinance, microfinance company, microcredit company, bank, «bank» MFI, «non-bank» MFI.
microfinance institution, microfinance, microfinance company, microcredit company, bank, «bank» MFI, «non-bank» MFI.
