The national Bank proposes to legalize P2P lending

The national Bank of Ukraine recommends to the bankers and the relevant departments to discuss the mechanism of legislative regulation of P2P lending.

On Tuesday April 26, said in a statement on the regulator’s website.

As reported, involvement of customers in favour of third parties, with the assistance of trust management and providing advice on finding potential investors is widely practiced in the world. However, this method of investing is more risky than traditional Bank deposits, because the refund is not guaranteed by the state, and the approach to the choice of borrowers very risky.

However, a number of Ukrainian banks have already started to use the tool P2P lending, offering the average income at 5% per annum more than on deposits. This interested a large number of clients and as of 1 April of the current year the volume of such operations amounted to UAH 1.5 billion, including with the March increase of 0.6 billion UAH.

At the same time, this type of lending is not subject to the law of Ukraine «About banks and banking activity» and is not regulated by neither the national Bank nor other financial market regulators.

According to the NBU, without proper control over the activities of banks contains significant risks for lenders, borrowers and the state because of several factors. In particular, due to the low awareness of the population about possible risks, the lack of guarantee of such deposits from the Deposit guarantee Fund of natural persons, the absence of liability of intermediaries, a possible unmapped banks of such operations in accounting, reporting, etc.

P2P (Peer-to-Peer) lending is a way of lending of funds between persons who are not related to each other, without the involvement of a financial intermediary (Bank, credit Union, etc.). Usually loans are provided on online platforms intermediaries who charge a Commission for granting loans and credit check.

The national Bank proposes to legalize P2P lending 27.04.2016

Апрель 27th, 2016 by
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