Microfinance in Russia: Benchmarks and Analysis 2006
This report examines Russian microfinance institutions by type, size, age and other factors driving their development. The report also analyzes Russian legislation regarding microfinance, development tendencies within the sector and characteristics of Russian MFIs. This analysis helps identify factors influencing the development of the microfinance industry in Russia that would lead to broader access to financial services. Findings from the report suggest:
- Russia has 2000 MFIs, most of which are small;
- Aggregate growth has been rapid, but institutional growth has been slow;
- Growth mismatch is due to the legislative environment and demographics of the country;
- Loan portfolios have grown by 20% annually but this growth has been mainly financed by credit unions;
- Sustainability has been a challenge because of the high cost of savings for Russian MFIs.
The report concludes that for further sector development and fundraising, it will be necessary to implement unified performance standards for MFIs and increase institutional transparency.